Trump is launching his own QE program.
U.S. President Donald Trump said he has directed the purchase of $200 billion in mortgage-backed securities (MBS) to reduce housing costs.
Trump emphasized this move will:
Lower mortgage interest rates
Reduce monthly payments
Make homeownership more accessible for the public.
Bill Pulte, CEO of the Federal Housing Finance Agency (FHFA), said these bond purchases could be implemented very quickly, as they have sufficient capacity and cash to carry them out.
This move is liquidity-infusing, positive for risk assets, and reduces short-term interest rate pressure.