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Trump Taps Fannie-Freddie and Treasury Funds to Advance Agenda Without Congress

Critics warn the strategy undermines oversight.

Overview

  • The administration directed Fannie Mae and Freddie Mac to purchase about $200 billion in mortgage-backed securities in a bid to lower mortgage rates.
  • Treasury tapped the Exchange Stabilization Fund to underwrite roughly $20 billion for a currency swap with Argentina, according to Axios.
  • Market analysts say the White House is relying on existing balance sheets to bypass Congress, raising legal and constitutional concerns about appropriation authority.
  • A White House spokesperson said the approach fulfills an America First mandate to address affordability and national security without needlessly increasing taxpayer spending.
  • Raw Story reported that federal prosecutors opened a probe into Fed Chair Jerome Powell tied to past testimony, a development it said rattled markets.