President Personally 'QE'? Trump Announces $200 Billion Mortgage Bond Purchase Plan

BlockBeats News, January 9th, U.S. President Trump announced that he would launch a $200 billion mortgage-backed securities (MBS) purchase program to lower mortgage rates, alleviate the housing affordability crisis. This move was seen by the market as Trump's direct push for his "personal version of quantitative easing (QE)" beyond intervening in the Fed's rate-cutting process.

In a post on Truth Social, Trump stated that he had "instructed relevant representatives to purchase $200 billion worth of mortgage-backed bonds" to reduce mortgage rates and monthly costs, enhance homebuying ability, and blamed the current housing crisis on the Biden administration.

U.S. Housing Finance Agency Director Bill Pulte confirmed to the Financial Times that the plan would be carried out by Fannie Mae and Freddie Mac, and does not require congressional approval. Under existing agreements, the two agencies still have a combined operational space of about $200 billion in mortgage investments.

Analysis pointed out that this move formally bears a high resemblance to the Fed's post-2008 financial crisis policy of stabilizing the market through MBS purchases. Despite the Fed having cumulatively cut rates by 75 basis points, the current U.S. 30-year fixed mortgage rate remains as high as 6.16%, with housing cost pressure continuing to be a political and economic focal point. Against the backdrop of high inflation and rising costs of living, Trump's move is seen as an attempt to directly intervene in the housing and financial markets through executive power to boost voter confidence.