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Fed's Harker says housing shortage a key inflation driver

Kitco News

NEW YORK, Sept 27 (Reuters) - Federal Reserve Bank of Philadelphia President Patrick Harker said on Tuesday that a shortage of housing in the U.S. is a key driver of the nation's historic surge in inflation pressures.

"Since the Great Recession, the United States has not built enough housing to keep price growth relatively modest," Harker said in an essay published on the bank's website. This shortage of homes "is a major driver of the far-too-high inflation plaguing our country."

Harker said "inflation is far too high across most goods and services in our economy," and added the Fed "is working to stabilize inflation and put the economy on a firmer footing for the long haul."

Harker is not currently a voting member of the rate-setting Federal Open Market Committee.

Reporting by Michael S. Derby Editing by Chris Reese
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