The announcement coincided with Yellen's visit to Minnesota, where she met with housing officials and CEOs, highlighting President Biden's economic agenda.

The upcoming presidential debate between President Biden and former President Donald Trump is expected to focus on the topic of inflation, making Yellen's housing initiatives timely. Recent inflation reports have shown a slight cooling off in prices, except for shelter costs, which have remained stubbornly high. The latest consumer price index report revealed that overall inflation stayed flat in May, while shelter inflation rose by 0.4%.

During a speech in Minneapolis on Monday, Yellen acknowledged the need for moderation in shelter inflation but emphasized the significant housing supply shortfall that has led to the current affordability crisis. As part of the new actions, the Treasury will allocate $100 million over the next three years to finance affordable housing projects. Moreover, Yellen is urging housing finance agencies to enhance their support for new development.

Yellen's visit to Minnesota is part of a wider campaign by the administration to promote President Biden's economic agenda. While President Biden prepares for the upcoming debate at Camp David, Yellen and other cabinet members, such as Acting Secretary for Housing and Urban Development Adrianne Todman and Transportation Secretary Pete Buttigieg, have been traveling across the country to advocate for Biden's infrastructure investments.

The economy has become a significant concern for President Biden among voters, particularly due to the record inflation caused by pandemic-related supply chain disruptions and labor shortages. Consumers continue to feel the squeeze from higher prices, and polls indicate that many blame the president for this situation. Housing costs, in particular, have remained persistently high, negatively impacting consumer spending.

President Biden has attempted to shift the blame for high housing costs onto corporate landlords, accusing them of "rent gouging" to maintain artificially high rents. However, the National Apartment Association, a prominent landlord lobby, has rejected this rhetoric, stating that politics should not influence housing policy.

As the Treasury Secretary, Yellen's $100 million fund for affordable housing aims to address the housing supply shortfall and alleviate the affordability crisis. The fund will provide crucial support to finance affordable housing projects over the next three years, reinforcing the administration's commitment to tackling housing issues nationwide.