Home repair program in Pa. would continue investment in essential renovations
A home repair program that Pennsylvanians really seem to need, based on the response, could continue if state officials can agree on how to run it.
A bipartisan group of state legislators announced – just before budget talks officially start in Harrisburg – they'll co-sponsor forthcoming legislation creating the PA Home Preservation Program.
https://penncapital-star.com/wp-content/uploads/2025/06/31epHPP-web-audio.mp3
Gov. Josh Shapiro's proposed budget allocates $50 million for the program.
It took mere months to spend four times that amount through the similarly-focused Whole Home Repair Program.
The WHRP diverted $125 million to financing weatherization, plumbing and other essential improvements to thousands of residential units across the state starting last September, according to the state Department of Community and Economic Development.
And more 18,000 applicants, combined, were left on waitlists kept by pass-through agencies, according to the planned bill's co-sponsorship memo.
Lawmakers used a one-time federal infusion from the American Rescue Plan to create the WHRP.
Program requirements limited homeowners to those making no more than 80 percent of median area household income. Landlords couldn't own more than five properties and 15 affordable units across all properties. And it capped project costs at $50,000 per unit.
State officials view the WHRP as a pilot for the proposed PA Home Preservation program that's intended to be more permanent.
'It is not easy to sort of do all this coordination, build out relationships with contractors, … [and] sub-grantees,' said DCED Secretary Rick Siger during the agency's budget hearing earlier this year. 'But we have a path now…informed by, frankly, just learning a bunch of stuff as we ran Whole Home Repair.'
The new initiative likely would have income limits for homeowner recipients and prioritize senior citizens, according to prime sponsor Rep. Lindsay Powell, D-Pittsburgh.
Other than that, few details have been hashed out, Powell said Friday.
But one would be an effort to keep program guidelines as consistent as possible, she said. She cited constantly changing expectations and reporting requirements as a major challenge during her time on Pittsburgh's Urban Redevelopment Authority Board.
Siger, Powell and others have pointed to the age of Pennsylvania's housing stock as another reason to invest in renovation and rehabilitation, with nearly 60 percent of homes statewide dating back to before 1970.
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Los Angeles Times
19 hours ago
- Los Angeles Times
Bessent says he's not pushing Fed cuts, just touting models
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'I'm not calling for one. I didn't call for one. I just said that a model of a neutral rate is approximately 150 basis points lower.' The Fed last month kept its target range for the benchmark rate at 4.25% to 4.5%. The median estimate of the neutral rate among Fed officials over the long run is 3%. Powell and many of his colleagues have for months argued that more time was needed to assess any impact on inflation and inflation expectations from President Donald Trump's tariff hikes. Trump has regularly criticized Powell for holding rates. Bessent, after taking the Treasury's helm, said he would only address past Fed actions, not future ones, but later weighed in on what he thought markets were expecting monetary policymakers to do. This week, he has taken to referring to economic models, and has repeatedly suggested a 50-basis-point rate cut is possible at the Fed's September meeting. 'It's not really the role of the Treasury secretary to opine' on the neutral rate, said Julia Coronado, founder of the research firm MacroPolicy Perspectives and a former Fed economist. 'The fact that the most senior economic official in the administration is saying these things publicly is direct, public pressure on what he wants the Fed to do.' Former Treasury Secretary Lawrence Summers, who served under Democratic President Bill Clinton, said he was 'surprised' to see Bessent's remarks on Wednesday. 'Usually that kind of judgment is not made by administration officials, and I'm not sure it's helpful for the administration to be publicly prescribing on monetary policy,' Summers said on Bloomberg Television's Wall Street Week with David Westin. Summers, a paid contributor to Bloomberg TV, also suggested that a measure of the neutral rate should incorporate the effects of large budget deficits and elevated demand for funds to pay for data centers — along with higher asset prices that reduce the flow of funds into savings. Against that backdrop, 'you wouldn't be prescribing a 175 basis point cut in rates unless we see a recession.' Interest-rate futures as of Thursday morning reflect bets that the Fed will cut rates by less than a cumulative 150 basis points by the end of next year. They also show slightly less confidence in a 25-basis-point reduction at the September meeting. The retreat came after a release on US wholesale inflation showed those prices climbed by the most in three years. Speaking to Bloomberg Television on Wednesday, Bessent said 'if you look at any model' it suggests that 'we should probably be 150, 175 basis points lower' on the Fed's benchmark. He also said that officials might have cut rates if they'd been aware of the revised data on the labor market that came out a couple of days after the latest meeting. 'I suspect we could have had rate cuts in June and July,' Bessent said. 'I don't know what model he's talking about,' said Jim Bianco, president of Bianco Research and a longtime Fed and Treasury watcher. 'There is no model I'm aware of that says it should be that low,' he said of the Fed's benchmark. Other gauges of where the Fed should be, such as the Taylor rule, also aren't arguing that the main rate should be 150 to 175 basis points lower than it is, Bianco said. He added that there have been many instances over the decades of 'cajoling Fed chairs,' and they're 'welcome to offer their opinion,' but it shouldn't change the central bank leader's opinion. Bessent repeated on Thursday that, given the context of the weaker jobs figures and not having cut rates the past couple of months, 'perhaps a 50-basis-point cut in September was warranted.' Two Fed district bank presidents said they're not backing such a move at this point. San Francisco Fed President Mary Daly said in a Wall Street Journal interview Wednesday, 'I just don't see that. I don't see the need to catch up.' St. Louis President Alberto Musalem said on CNBC Thursday, that a 50 basis-point cut would be 'unsupported by the current state of the economy and the outlook for the economy.' Flatley writes for Bloomberg.
Yahoo
2 days ago
- Yahoo
Inflation Data Keeps Gold Steady as Fed Rate Cut Bets Hold
Happy Friday, traders. Welcome to our weekly market wrap, where we take a look back at these last five trading days with a focus on the market news, economic data, and headlines that had the most impact on gold prices and other key correlated assets—and may continue to in the future. Here's what you need to know: Gold hovered near $3335/oz as markets priced in a likely Fed rate cut this fall. July's CPI came in slightly below expectations, keeping optimism for easing alive. PPI surprised to the upside at +0.9%, but markets shrugged off inflation fears—so far. All eyes now turn to Powell's Jackson Hole speech for clues on upcoming policy moves. So, What Kind of a Week Has it Been? Price inflation in the US economy was the dominant theme for the markets in general this week, and for gold trading, it has been no exception. With investors, traders, and money managers across the globe primed for the Federal Reserve to just about finally announce the first (of 2-3 projected) interest rate cut of 2025, updated inflation reporting draws a great deal of focus this week. Following on from a deeply disappointing July Jobs Report—which signaled the US economy may be faltering under the pressure of higher interest rates and accordingly tight financial conditions—markets and Fed watchers across the world were looking for inflation pressures to appear mild (if not moderating) enough to further encourage the FOMC to lower policy rates and widen the flow of money. Inflation Reports Send Mixed Signals Markets would certainly have preferred to see US inflation come in cooler than expected, or at least lower than the previous month's pace this week, to make a strong argument for the FOMC to judge conditions as ready for a rate cut. Neither Tuesday's Consumer Price Index nor Thursday's Producer Price Index delivered on that hope, but at the same time, neither blew up that optimistic projection entirely. (In fact, risk appetite seems to be up on net at the end of the week.) July's CPI numbers were the most accommodating—helpful, given it's the data set that draws the greater attention by far. While 'core inflation' crept higher on both a monthly and annualized basis, traders were comfortable assessing it as within normal range and not a signal of re-heating price pressures. The headline inflation rate came in slightly below expectations. Although the numbers were far from what we would assume could get the Fed to rush to lower rates, the central bank has implied that the call to hold off is based on a risk of inflation climbing again later—after the full suite of Trump Tariffs really take effect—and not a great level of discomfort with where inflation is currently (roughly +3% YoY). PPI Surprise Fails to Derail Fed Cut Hopes The Producer Price Index output for the same month, printed on Thursday morning, was less supportive of projecting interest rate cuts. The headline number showed PPI—the cost of raw materials used to produce goods—coming well above expectations at a month-over-month rate of +0.9%. The implication here, presumably, is that producers are already facing higher prices as firms around the world attempt to protect themselves from headlines created by the US's broad and severe application of tariffs. Although this should imply a considerable risk of higher consumer inflation in the medium term once producers pass these higher prices on to consumers, the report has mostly been met with a shrug across US trading. Perhaps the view is that this projection risks the opportunity for the Fed to cut rates again in early 2026, but not their appetite to lower rates to levels projected for the end of this year. Gold Market Reaction: Steady Support, No Breakout We have seen both of these reactions borne out in the gold spot market this week. After the yellow metal shed some value at the start of the week, falling to $3330/oz in early Tuesday trading as investors shifted ahead of the CPI release, support has been consistent at that level, with gold still finding eager buyers. At the same time, there has been no notable attempt to push the precious metal's price back towards $3400. Trading on Tuesday held gold relatively flat, implying that July CPI makes the case for a cut by the end of September, yes—but that this projection is fully priced in. The immediate market reaction to the upside surprise in producer prices was generally tepid as well, suggesting that investors don't expect the data set to scuttle expectations for at least one Q3 cut. As a result, gold looks set to close the week at $3335/oz in the spot market, more or less level with Tuesday's close. Looking Ahead: Jackson Hole and the Fed's Next Moves For better or worse, we don't have to get much closer to the September FOMC meeting to see if these estimations of how the Federal Reserve decision makers are digesting inflation metrics are correct. With the Kansas City Fed's annual Jackson Hole Symposium kicking off on Friday with the usual keynote address from the Chair of the Fed, we can expect Jerome Powell & Company to send meaningful signals about how they expect inflation pressures, among other key macroeconomic inputs, to influence monetary policy for the next 3 to 6 months. In the meantime, traders, I hope you can get out and safely enjoy your weekend for the next couple of days. After that, I'll see you back here next week for another market recap.
CNBC
2 days ago
- CNBC
Fed policy will be the major focus next week for a market that's trying to broaden out
Whatever is the future path of monetary policy could decide what happens next for a stock market that's struggling to broaden out and extend leadership beyond the companies that have worked so far in 2025. Central bank officials from around the globe will convene next week in Jackson Hole, Wyoming for the Federal Reserve's annual economic symposium , an event that will be closely watched for any clues from Fed Chair Jerome Powell as to what will happen at its remaining policy meetings this year, in September, October and December. This week, the prospect of more interest rate cuts — potentially even a supersized half point next month — drove up parts of the market that have been left behind. The Russell 2000 rallied more than 3%, headed for its best week since May, when some technical analysts had anticipated a small cap summer. The equal weight S & P 500 outperformed. Health care, this year's laggard, was the best-performing S & P 500 sector , climbing almost 5% this week. So long as rate cuts are coming — without a a slowing economy or rise in inflation — the reversal in fortunes for the market's former laggards may continue. That would be a boon for an overvalued market that has again depended on a handful of its biggest winners for this year's gains. "Will small-, mid-caps outperform large caps? That's the question," said Brian Leonard, portfolio manager at Keeley Gabelli Funds. "We think there's a possibility they do." Potentially, Fed Chair Powell could throw cold water on the market if he takes a more hawkish stance than expected at Jackson Hole next week, especially as macroeconomic concerns persist. But many market observers are certain that the typically staid Fed chief will do his best not to show his cards. Leonard, for one, said he's cautiously optimistic on the broader equity market. On Friday, the major averages were each headed for a winning week, with the Dow Jones Industrial Average higher by nearly 2% and the S & P 500 and Nasdaq Composite each up roughly 1%. Future of the Fed The Fed will come under the spotlight next week at a critical time. The Trump administration is actively searching for the next Fed chief to succeed Powell when his term ends next May, a race that is raising questions about Fed independence. This week, it was revealed there are 11 potential candidates , including Jefferies Chief Market Strategist David Zervos, former Fed Governor Larry Lindsey and BlackRock chief investment officer for global fixed income Rick Rieder. Many of the candidates, including Zervos and Rieder, have publicly called for aggressive interest rate cuts. It's a likely prerequisite for President Donald Trump, whose rising hostility toward Powell has hinged on the Fed having yet to lower interest rates this year. Trump has unleashed a barrage of barbs, calling Powell — who Trump nominated as Fed chair in late 2017 — "TOO LATE," and "stupid," among other epithets. Yet, economists expect that Powell is more likely to use his time on the podium in Wyoming to address how monetary policy could change in the years ahead. He's scheduled to speak at 10 a.m. ET next Friday, Aug. 22. This week, Sarah House, senior economist at Wells Fargo Economics, wrote that the Fed will likely outline an approach that abandons a policy of allowing inflation to sometimes run a little above 2% to make up for periods when inflation was lower than 2%, and instead target "a simple 2% inflation target, where it does not try to make up for past misses." Other changes could include tying its maximum employment objective more directly to its inflation goal, House said. "We'll find out what Mr. Powell says next week at the Jackson Hole symposium — if there is a likelihood of a cut or not, and we'll see what his commentary is," Leonard, the portfolio manager, said. Fed minutes next week could also illustrate the current dynamic at the central bank, given that the last meeting had two policymakers dissenting from the group and voting in favor of lower interest rates. It was the most meaningful dissent since late 1993. Caution and optimism The stock market continues to perform extraordinarily well this year, defiant of macroeconomic and geopolitical concerns. Yet, with August and September both months that show seasonally weaker prices, and investors continuing to scan for signs of the tariff impact on business, Wall Street is bracing for continued, near-term choppiness. Next week Target and Walmart report earnings results. The big box retailers are likely to provide crucial commentary on the state of consumer spending during the critical back-to-school season. Week ahead calendar All times ET. *2025 Federal Reserve Bank of Kansas City's Economic Policy Symposium in Jackson Hole, Wyoming on "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy" takes place Aug. 21-23 Monday, Aug. 18 10:00 a.m. NAHB Housing Market Index (August) Earnings: Palo Alto Networks Tuesday, Aug. 19 8:30 a.m. Building Permits preliminary (July) 8:30 a.m. Housing Starts (July) Earnings: Keysight Technologies , Jack Henry & Associates , Home Depot Wednesday, Aug. 20 2:00 p.m. FOMC Minutes Earnings: TJX , Analog Devices , Estee Lauder Companies , Target , Lowe's Companies Thursday, Aug. 21 8:30 a.m. Continuing Jobless Claims (08/09) 8:30 a.m. Initial Claims (08/16) 8:30 a.m. Philadelphia Fed Index (August) 9:45 a.m. PMI Composite preliminary (August) 9:45 a.m. S & P PMI Manufacturing preliminary (August) 9:45 a.m. S & P PMI Services preliminary (August) 10:00 a.m. Existing Home Sales (July) 10:00 a.m. Leading Indicators (July) Earnings: Workday , Ross Stores , Intuit , Walmart Friday, Aug. 22
