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Federal Reserve Chairman: Migration Boosts Mortgage Rates
[Breitbart] President Joe Biden’s migration crisis raises the mortgage rates that burden young couples and families, according to the president of the Federal Reserve Bank of Minneapolis.“While the long-run effect of increased immigration on inflation is unclear, immigrants nonetheless need a place to live, and their arrival in the U.S. has likely also increased demand for housing,” said Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said on May 7. In turn, he said, mortgage rates are nudged upwards with higher interest rates, saying, “Perhaps a neutral [interest] rate for the housing market is higher than before the pandemic.” Kashkari is a member of the Federal Reserve, which is now raising interest rates to reduce the unpopular inflation caused by the federal government’s deficit spending. But since 2021, Biden’s deputies have also worsened inflation by importing roughly ten million legal, illegal, and quasi-legal migrants. The migrants are intended to fill jobs, reduce wages, spur the consumer economy, and boost rental rates. The human-resources stimulus is good for investors who want more consumer demand and lower wages, and for progressives who want more government dependents and potential voters. But this huge inflow has inflated housing prices, used autos, and other consumer items while also cutting wages for Americans. “Abundant labor coming across the border” is reducing the wages paid to Americans, Kristalina Georgieva, managing director of the International Monetary Fund, said in April. “Across the G10 [group of wealthy countries] … there is no doubt immigrants need things as soon as they arrive, boosting demand [for used autos, food, etc.],” the Economist magazine admitted. “Nowhere is this clearer than in the case of rental housing, which is in short supply across the anglosphere.” The chaos caused by mass migration is forcing an elite rethink of economic policy. “The big winners are the countries that have shrinking populations … [such as China and Japan who] will rapidly develop robotics and AI and technology,” BlackRock founder Larry Fink said at an April 29 event hosted by the World Economic Forum in Saudi Arabia. He continued: If a promise of all that [technology] transforms [per person] productivity, which most of us think it will [emphasis added] — we’ll be able to elevate the standard living in countries, the standard of living for individuals, even with shrinking populations. Democrats, however, prefer to stimulate the nation’s consumer economy with more migrants. Migrants — not voting Americans and their children — “are what makes us [economically] strong,” Biden told a May 1 fundraiser for pro-migration groups at the elite Mayflower Hotel in Washington, DC. Posted by: Skidmark 2024-05-09 |
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