NHC President Warns of Stagflation After Fed's Latest Rate Increase Raising Interest 'Is No Longer the Answer'

house model like up arrow on background, finance and banking about house concept, investment ideas about real estate.house loan, housing price.

In a May 3 statement, National Housing Conference (NHC) President/CEO and former Treasury Department official during the Obama and Trump administrations  David M. Dworkin expressed serious concerns about the Fed’s move to increase interest rates. 

“Today’s actions by the Federal Reserve Board’s Federal Open Market Committee (FOMC) to increase interest rates by another 25 basis points risks triggering stagflation, combining a recession with inflation,” Dworkin noted. “As I stated previously, raising interest rates further to control inflation is no longer the answer and is instead contributing to an increase in the cost of shelter. The FOMC needs to let the economy absorb the previous rate increases while we focus on increasing housing supply to address skyrocketing shelter costs. 

“The FOMC’s indication it may step back from taking further action will not address the affordable housing shortage in the country that has been exacerbated by inflation” Dworkin continued. “We need the Administration and Congress to address the critical need for affordable housing in this country and move forward with actions and policies that will increase our nation’s housing supply. Federal support, such as the Neighborhood Homes Investment Act and the Affordable Housing Credit Improvement Act, would create 2.5 million affordable housing units over the next 10 years if enacted.”

Founded in 1931, the National Housing Conference is a 501(c)3 nonprofit organization and the oldest and broadest housing coalition in America. Dworkin was a and has led the organization since 2018.

Related Articles

Study Finds NY Metro Mortgage Payments Up 60%

Study Finds NY Metro Mortgage Payments Up 60%

Rising Interest Rates Hit Homeowners Hard

3D illustration of a rubber stamp with the word refinance over a mortgage lender rate sheet. Debt consolidation and debt or loan refinancing concept.

The Uncertainties of Refinancing Your Underlying Mortgage

Today’s Interest Market Poses Challenges

flip 2022 to 2023 block with house model. real estate, Home loan, tax, investment, financial, savings and New Year Resolution concepts

End-of-Year Unit Sales

Some Advice from the Pros

Miniature colorful house on stack coins using as property and financial concept

Navigating Today's Mortgage Market

Creative Approaches to Higher Costs

Graph representing the rise in mortgage interest rates drawn on a chalkboard lying on a wooden table. A model of a house with a red roof is on the chalkboard. Finance and real estate concept.

Rising Interest Rates

What Does it Mean Right Now?

Study: Income Needed to Buy Median-Price Home Has Doubled Post-Pandemic

Study: Income Needed to Buy Median-Price Home Has Doubled Post-Pandemic

...and New Home Prices Have Tripled