US President Donald Trump speaks during a measure signing ceremonial successful the Oval Office of the White House successful Washington, DC, US, connected Friday, Dec. 12, 2025.
Francis Chung | Politico | Bloomberg | Getty Images
President Donald Trump connected Thursday said helium is "instructing my Representatives" to bargain $200 cardinal successful mortgage bonds, claiming that doing truthful volition thrust rates and monthly payments down.
Trump, successful a Truth Social post, said helium was issuing that directive due to the fact that Fannie Mae and Freddie Mac, the 2 government-sponsored mortgage-issuing entities, are flush with cash.
It was unclear who Trump is referring to arsenic his representatives. The White House and the Federal Housing Finance Agency did not instantly respond to CNBC's requests for clarity.
The station came hours aft FHFA Director Bill Pulte said successful a CNBC interrogation that helium expects Trump volition marque a determination successful the adjacent period oregon 2 connected a possible IPO of Fannie and Freddie.
Trump claimed that his latest directive would assistance reconstruct "affordability," a connection that has go cardinal to Democrats' governmental messaging arsenic they impeach the Republican president of failing to code precocious prices.
Trump heaped disapproval connected the medication of his predecessor, Joe Biden, claiming that helium had "ignored the Housing Market" amid a slew of different argumentation failures.
"Everything was broken, but I, arsenic President of the United States, person already fixed it!" Trump declared. "Now, I americium giving peculiar attraction to the Housing Market."
"Because I chose not to merchantability Fannie Mae and Freddie Mac successful my First Term, a genuinely large decision, and against the proposal of the 'experts,' it is present worthy galore times that magnitude — AN ABSOLUTE FORTUNE — and has $200 BILLION DOLLARS IN CASH," helium wrote.
"Because of this, I americium instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS."
It was not wide from Trump's station whether it would beryllium Fannie and Freddie, the Treasury Department oregon different entity doing the buying.
The Federal Reserve successful the past has purchased owe bonds successful an effort to little rates, arsenic portion of the monetary argumentation known arsenic "quantitative easing." But the enforcement subdivision cannot bid the autarkic cardinal slope to initiate those transactions.
The Treasury has purchased owe bonds successful the past during times of utmost turmoil, specified arsenic the lodging situation of 2008 and 2009.
It was besides not wide whether this buying would person immoderate interaction connected owe rates. The Fed's quantitative easing typically involves buying aggregate types of securities, with larger amounts done successful Treasuries successful bid to little semipermanent Treasury rates.
Mortgage rates typically travel the pb of semipermanent Treasury rates, alternatively than owe enslaved yields.
The 10-year Treasury output ticked somewhat little aft hours amid Trump's comments.
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