The End of Monetary Independence: Trump Bypasses the Fed In a bold, unilateral move, Trump directed Fannie Mae and Freddie Mac to buy $200 billion worth of mortgage bonds, an intervention aimed at artificially suppressing mortgage rates and jump-starting a sluggish housing market. To put the scale in perspective, Fannie and Freddie already back or own roughly 70% of all U.S. residential mortgages, according to data from the Federal Housing Finance Agency (FHFA)—meaning even modest policy shifts by these entities can ripple across the entire housing system. What does this mean in plain English? It means the president — not the Fed — is now pulling the strings on interest rates through government-controlled balance sheets rather than central bank policy.…
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