BlockBeats News: On January 9, US President Trump announced the launch of a $200 billion mortgage-backed securities (MBS) purchase plan to lower mortgage rates and ease the housing affordability crisis. The market views this move as Trump’s direct push for his “personal version of quantitative easing (QE)” beyond intervening in the Federal Reserve’s rate-cutting process.
Trump posted on Truth Social stating that he has “instructed relevant representatives to purchase $200 billion worth of mortgage bonds” to reduce mortgage rates and monthly payment costs, enhance purchasing power, and attributed the current housing crisis to the Biden administration.
Bill Pulte, director of the US Housing Finance Agency, confirmed to the Financial Times that the plan will be executed by Fannie Mae and Freddie Mac and does not require congressional approval. According to existing agreements, the two institutions still have approximately $200 billion in combined operational capacity in mortgage investments.
Analysis points out that this move is highly similar in form to the Federal Reserve’s policy of purchasing MBS to stabilize the market following the 2008 financial crisis. Although the Federal Reserve has cumulatively cut rates by 75 basis points, the current US 30-year fixed mortgage rate remains as high as 6.16%, with housing cost pressure continuing to be a political and economic focus. Against the backdrop of high inflation and rising cost of living, Trump’s move is viewed as an attempt to directly intervene in housing and financial markets through executive power to boost voter confidence.
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Президент лично «QE»? Трамп объявил о плане покупки облигаций на сумму 200 миллиардов долларов
BlockBeats News: On January 9, US President Trump announced the launch of a $200 billion mortgage-backed securities (MBS) purchase plan to lower mortgage rates and ease the housing affordability crisis. The market views this move as Trump’s direct push for his “personal version of quantitative easing (QE)” beyond intervening in the Federal Reserve’s rate-cutting process.
Trump posted on Truth Social stating that he has “instructed relevant representatives to purchase $200 billion worth of mortgage bonds” to reduce mortgage rates and monthly payment costs, enhance purchasing power, and attributed the current housing crisis to the Biden administration.
Bill Pulte, director of the US Housing Finance Agency, confirmed to the Financial Times that the plan will be executed by Fannie Mae and Freddie Mac and does not require congressional approval. According to existing agreements, the two institutions still have approximately $200 billion in combined operational capacity in mortgage investments.
Analysis points out that this move is highly similar in form to the Federal Reserve’s policy of purchasing MBS to stabilize the market following the 2008 financial crisis. Although the Federal Reserve has cumulatively cut rates by 75 basis points, the current US 30-year fixed mortgage rate remains as high as 6.16%, with housing cost pressure continuing to be a political and economic focus. Against the backdrop of high inflation and rising cost of living, Trump’s move is viewed as an attempt to directly intervene in housing and financial markets through executive power to boost voter confidence.