Summary
President Trump is trying to lower borrowing costs for people by ordering specific policies, not waiting for the Federal Reserve to cut interest rates. He has directed Fannie Mae and Freddie Mac to buy mortgage bonds and suggested capping credit card rates at 10%. These actions are meant to help people spend less on loans, though their overall economic impact is not certain.
Key Facts
- President Trump wants borrowing to be cheaper for consumers.
- He ordered Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds.
- This bond buying led to lower mortgage rates, dropping them below 6%.
- Trump proposed a cap of 10% on credit card interest rates for one year.
- It’s unclear if banks will follow the credit card rate cap without laws forcing them.
- Economists warn that such policies might harm the economy by reducing credit access.
- Lower mortgage rates could raise housing demand, affecting home prices.
- Trump is using executive actions rather than going through Congress or formal regulations.
