$BTC $TRUMP Trump Announces $200B MBS Purchase Plan — A New Liquidity Shock for U.S. Markets 🏠💵
According to ChainCatcher, U.S. President Donald Trump has revealed a $200 billion Mortgage-Backed Securities (MBS) purchase initiative aimed at lowering mortgage rates and easing the housing affordability crisis.
Unlike Federal Reserve rate cuts, this action is being framed as direct executive intervention in the housing market, resembling a parallel form of Quantitative Easing (QE) — implemented through federal housing finance institutions, not the central bank.
🔹 Execution Plan Confirmed
The program will be carried out by Fannie Mae and Freddie Mac
Bill Pulte, Director of the U.S. Housing Finance Agency, confirmed to the Financial Times that:
The plan does not require congressional approval
These institutions already have ~$200B in operational capacity under existing agreements to support mortgage investments
📉 Current Market Reality
Even after the Federal Reserve cut rates by 75 basis points (0.75%),
the 30-year fixed mortgage rate remains elevated at ~6.16%
The persistence of high borrowing costs keeps housing affordability a major political and macroeconomic pressure point
💡 Macro & Liquidity Implications
Historically, large-scale MBS purchases:
Inject liquidity into credit markets
Compress long-term borrowing costs
Influence risk appetite across financial assets
Can spill over into Bitcoin and crypto sentiment cycles, especially when liquidity expands outside traditional monetary policy
This initiative echoes the Federal Reserve’s 2008 MBS purchase playbook, which was originally deployed to stabilize markets after the global financial crisis.
🎯 Strategic Intent
Amid rising inflation, cost-of-living pressure, and political blame narratives, Trump’s move is being interpreted as:
A bid to restore voter confidence
A liquidity-driven intervention to stimulate home-buying capacity
An attempt to influence credit markets using executive authority rather than monetary policy
DYOR | NFA
✍️ DigitalArshad
#USTradeDeficitShrink #ZTCBinanceTGE
