9/27, 9:12 PM (Source: TeleTrader)
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Soaring housing prices major driver of inflation - Fed

Federal Reserve Bank of Philadelphia President and Chief Executive Officer Patrick Harker noted that soaring prices of housing represent a major driver of the far-too-high inflation in the United States, along with rising costs of food.

Harker clarified that while the Federal Reserve is focused on containing inflation and strengthening the economy over the long term, adding that action by the federal, state, and local governments would also be necessary to rein in the housing market's escalating prices. The Federal Reserve Philadephia president called the issue of high housing inflation a "macroeconomic problem," in the essay posted on the official website.

"We must do everything we can to get shelter inflation under control," Harker stressed. The latest reading of home prices by S&P CoreLogic Case-Shiller indicated a jump of 15.8% in July compared to the corresponding time span the year before.

Baha Breaking News (BBN) / AB