The U.S. Treasury Secretary, Janet Yellen, is worried about housing costs, expecting high inflation to remain for several months before easing.
The housing market remains in a better position compared to the time prior to the 2008 market crash, Yellen told CNBC
“It’s a very different phenomenon but I do worry about affordability and the pressures, higher housing prices will create for families that are first-time homebuyers.”
“I think we will have several more months of rapid inflation so I’m not saying that this is a one-month phenomenon. But I think over the medium term, we’ll see inflation decline back to a normal level. But of course, we have to keep a careful eye on it.”
“I have a lot of respect for the Federal Reserve and it’s important for them to make independent judgments about what’s appropriate. I think that the Fed has done a good job,” said the former Fed Chair.