President Donald Trump this week has zeroed in on an issue that's at the heart of America's affordability crisis: housing costs. But it's not clear if his latest proposal, which involves instructing his "representatives" to purchase $200 billion in mortgage-backed securities, will move the needle for the housing market in the long run, economists and analysts told Business Insider.The mortgage-bond purchasing plan, which Trump announced on Truth Social Thursday night, is a lot to grapple with for people un ...

Core Viewpoint - The U.S. government, through Fannie Mae and Freddie Mac, plans to purchase $200 billion in mortgage-backed securities to lower mortgage rates and improve housing affordability amid rising economic concerns [10][9]. Group 1: Financial Position of Fannie Mae and Freddie Mac - As of the end of September, Fannie Mae and Freddie Mac reported less than $17 billion in cash and cash equivalents, but have access to nearly $100 billion in available funds when considering broader balance sheet assets [10][11]. - Fannie Mae reported approximately $101 billion in combined cash, restricted cash, and securities purchased under agreements to resell in the third quarter, while Freddie Mac held nearly $91 billion in similar assets [2][10]. Group 2: Economic Context and Impact - Housing affordability is a significant political and economic issue in the U.S., with high mortgage rates and elevated home prices deterring many potential buyers [3][10]. - The planned intervention is reminiscent of the Federal Reserve's actions during the pandemic, which involved purchasing large volumes of mortgage-backed securities to stabilize markets [6][11]. - Economists suggest that the $200 billion purchase will have a modest impact on mortgage rates, potentially lowering borrowing costs by approximately 10 to 15 basis points [6][11]. Group 3: Government and Regulatory Actions - The current bond purchases will not involve newly created central bank money, and will be funded entirely through the balance sheets of Fannie Mae and Freddie Mac, without the involvement of the Federal Reserve or U.S. Treasury [8][11]. - The announcement follows President Trump's recent efforts to restrict institutional investors from purchasing single-family homes, indicating a broader strategy to address housing costs [9][10].

Core Viewpoint - President Trump's proposal to purchase $200 billion in mortgage-backed securities is facing significant criticism from economists, who warn that while it may temporarily lower mortgage rates, it could worsen housing affordability in the long run [1]. Group 1: Economic Concerns - Economist Mohamed El-Erian highlights that the proposal revives concerns about political interference in monetary policy, particularly regarding the Federal Reserve's asset purchases, which he refers to as "People's QE" [2][3]. - El-Erian also notes that public anxiety over affordability will likely lead to more aggressive policy responses, indicating a shift in market dynamics [4]. Group 2: Long-term Implications - Economist Peter Schiff criticizes the plan, stating that using $200 billion to buy mortgage bonds reduces the funds available for Treasury purchases, potentially leading to increased Treasury yields and inflation in the long term [5]. - Schiff argues that the fundamental issue in the housing market is not high mortgage rates but rather high home prices, suggesting that the proposed policy could exacerbate the crisis by allowing buyers to overpay for homes [6]. Group 3: Unusual Intervention - Nick Timiraos from The Wall Street Journal points out the unusual nature of this intervention, noting that it occurs during a period of solid economic activity without systemic risks, indicating a political motivation behind the move [7][8]. - Timiraos emphasizes that previous Federal Reserve purchases of mortgage-backed securities were made without profit motives and often resulted in significant losses, contrasting this with the current proposal [8]. Group 4: Market Reactions - Following Trump's announcement, prominent real estate stocks, including the Vanguard Real Estate Index Fund ETF and Opendoor Technologies Inc., experienced a rally, indicating a positive market reaction despite the underlying economic concerns [8].

President Donald Trump speaks during a bill signing ceremony in the Oval Office of the White House, in Washington, Dec. 12, 2025.It was unclear who Trump is referring to as his representatives. The White House and the Federal Housing Finance Agency did not immediately respond to CNBC's requests for clarity.Trump, in a Truth Social post , said he was issuing that directive because Fannie Mae and Freddie Mac, the two government-sponsored mortgage-issuing entities, are flush with cash.President Donald Trump on ...

Summary of Key Points from the Conference Call Industry and Company Overview - The conference call primarily discusses the impact of macroeconomic factors on various asset classes, particularly focusing on the Federal Reserve's monetary policy, U.S. economic growth, and commodity markets, including metals and currencies. Core Insights and Arguments Federal Reserve's Asset Purchases - The Fed's decision to restart asset purchases at a rate of $40 billion per month aims to enhance control over short-term interest rates during periods of market stress, which is expected to support front-end liquidity and sensitive risk assets [9][2][8] U.S. Economic Growth Outlook - The U.S. GDP growth in Q3 2025 surprised to the upside at 4.3% quarter-over-quarter, compared to a consensus of 3.3%. This growth is attributed to strong consumption and exports, with firms passing through tariff costs by raising prices, which is expected to lower downside risks to the labor market and support a growth rebound in 2026 [14][3][16] Metals Market Sustainability - The recent rally in metals is deemed sustainable, driven by demand from AI-related power consumption. Data centers are projected to consume 500,000 tons of copper in 2025, increasing to approximately 740,000 tons in 2026, contributing significantly to copper demand growth [19][20] Japanese Yen and Interest Rates - A weaker Japanese Yen could lead to a deeper sell-off in long-end Japanese government bonds (JGBs). The Bank of Japan's lack of urgency regarding rate hikes may create perceptions of being behind the curve on inflation, potentially exacerbating the depreciation of the Yen [22][24] UK Inflation and Bank of England - UK inflation fell to 3.2% year-over-year in November, leading to expectations of a rate cut by the Bank of England in Q1 2026. The inflation drop is attributed to seasonal effects and a rapid decline in food prices [26][27] Other Important Insights - The Fed's asset purchases are not classified as quantitative easing but are intended to improve liquidity conditions in the money market [9] - The potential for further price increases by U.S. corporates is anticipated through Q1 2026, with core CPI inflation expected to rise to 3.0% early next year [14] - The discussion highlights the sensitivity of risk assets to liquidity conditions, as evidenced by the widening of 2-year UST SOFR swap spreads following the Fed's announcement [10][12] This summary encapsulates the key points discussed in the conference call, providing insights into the macroeconomic environment and its implications for various asset classes.

Sansert Sangsakawrat/iStock via Getty Images The Visine Effect Get the red out. Dear Fellow Shareholders, The average investor will look fondly on 2025, with the S&P 500 Index (SP500) rising 17.9% and the Bloomberg US Aggregate Index (LBUSTRUU) up 7.3%. The herd was warm and well-nourished with visions of AI grandeur dancing in their heads and expectations of additional Fed easing. Investors reacted with relief as the impact of trade policies was less harmful to corporate earnings than originally anticip ...

Core Viewpoint - The precious metal market, particularly gold, experienced significant gains in 2025, with gold rising over 66% and reaching approximately $4,325 per ounce by year-end, marking the best percentage gain since 1979 [1][9]. Gold Market Insights - Bank of America forecasts gold prices to reach $5,000 per ounce, driven by continued central bank buying, rising U.S. fiscal deficits, and a weaker U.S. dollar, which fell over 6% in 2025 [2][3]. - The bullish sentiment in the gold market is supported by the absence of factors that typically end bull markets, according to Bank of America strategist Michael Widner [3]. Performance of Other Precious Metals - Silver also had a record year, gaining over 142%, while copper advanced by over 41%, marking the largest one-year gains since 2009 [8][9]. - Exchange-traded funds linked to these precious metals mirrored the gains seen in the underlying metals during 2025 [9]. Federal Reserve Actions - The Federal Reserve cut interest rates for the third consecutive time in December 2025, indicating a potential resumption of treasury buying, which may support the precious metals market [15][16]. - Reserve management purchases are expected to amount to $40 billion in the first month, with the potential for elevated levels to alleviate near-term pressures in money markets [15]. Market Sentiment - MacroMavens president Stephanie Pomboy expressed surprise at the rapid rise in precious metal prices but anticipates further increases, attributing this to a shift towards hard assets over paper assets [12].

Abra CEO Bill Barhydt believes Bitcoin could benefit in 2026 as easing monetary policy injects fresh liquidity into global markets, reviving risk appetite after a prolonged period of tight financial conditions. Key Takeaways: Fed bond buying and lower rates could support Bitcoin in 2026. Clearer regulation and institutional demand remain long-term tailwinds. Gains are likely to be steadier, with fewer sharp rallies. Speaking on Schwab Network, Barhydt said the U.S. central bank is already laying ...

Here Is The Remarkable Big Picture For Gold As We Head Into 2026 After a wild year of trading in 2025, here is a remarkable look at the big picture for gold as we head into 2026.Gold’s Bigger Picture in a Narrowing 2026December 30 (King World News) – Matthew Piepenburg, partner at VON GREYERZ:  It’s that time of year again to put everything somehow together.But looking back on the knowns of 2025 as we prepare for the inevitable unknowns of 2026, there is little need for the wringing of hands.Preparation vs ...

to Kevin Hanks live at the CBOE. Our pre-bell playbook begins there and uh we'll start with this metals bounceback. You and I were talking yesterday.I mean I think I said $200 or something for gold being down. It was crazy. It's been crazy, right.What's going on now with the metals. >> Well, here here's what it is, Nicole. And it it's indicative of the um intricate nature of the futures markets.The rumors are out there that that the CME raised margin rates on futures for the for some of the metals and that' ...