Trump Bypasses Fed, Orders Fannie & Freddie To Buy $200B In Dreams

KEY POINTS

•In January 2026, President Trump announced on Truth Social a directive for Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds.
•He simultaneously called for a 10% cap on credit card interest rates starting next week, despite lacking legislative or regulatory authority.
•Economists from Morgan Stanley and Citi’s CFO warned these moves could reduce credit access and slow down the overall economy.

In a dazzling display of economic improvisation, President Trump decided the Federal Reserve’s interest rate moves were too slow for his liking. Announced exclusively on Truth Social in early January 2026, Trump commanded Fannie Mae and Freddie Mac to buy $200 billion worth of mortgage bonds, hoping to lower mortgage rates and lure eager homebuyers like moths to an interest rate flame. Simultaneously, he declared credit card interest rates should be capped at 10% for exactly one year starting next week — banking on goodwill from banks without activating pesky laws or regulations. Morgan Stanley’s economists and Citi CFO Mark Mason quickly dashed in with gloomy forecasts of economic slowdowns, credit crunches, and dashed consumer dreams. Despite mortgage rates dipping below 6% (lowest since last year), insiders warn this DIY rate cutting might just be throwing economic spaghetti at the wall, hoping it sticks without Congress or legal deck-clearing. Trump, evidently tired of boring legal steps, is playing Robin Hood by decree — but whether he steals from the banks or from economic sanity remains the cliffhanger.