The President personally "QE"? Trump announces $200 billion mortgage bond purchase plan

BlockBeats News, January 9 — U.S. President Donald Trump announced the launch of a $200 billion Mortgage-Backed Securities (MBS) purchase program to lower mortgage rates and alleviate the housing affordability crisis. This move is seen by the market as Trump’s direct push for his “personal version of quantitative easing (QE)” beyond the Federal Reserve’s interest rate cuts.

Trump posted on Truth Social that he has “instructed relevant representatives to purchase $200 billion worth of mortgage bonds” to reduce mortgage rates and monthly payments, improve homebuying ability, and blamed the current housing crisis on the Biden administration.

Bill Pulte, Director of the U.S. Federal Housing Finance Agency, confirmed to the Financial Times that the program will be executed by Fannie Mae and Freddie Mac, without requiring Congressional approval. According to existing agreements, the two agencies still have approximately $200 billion in capacity for mortgage investments.

Analysts point out that this move is highly similar in form to the Fed’s policy after the 2008 financial crisis, which involved purchasing MBS to stabilize the market. Although the Fed has already cut interest rates by 75 basis points, the current 30-year fixed mortgage rate in the U.S. remains at 6.16%, and housing cost pressures continue to be a political and economic focus. Against the backdrop of high inflation and rising living costs, Trump’s action is seen as an attempt to directly intervene in housing and financial markets through administrative power to boost voter confidence.