Trump’s $200 Billion MBS Order Asserts New Power Over Markets

With his directive ordering Fannie Mae and Freddie Mac to buy $200 billion of mortgage bonds, President Donald Trump has opened a new front in the administration’s effort to bolster housing affordability.

Yet by pressing the government-backed housing-finance giants to act as large-scale buyers, the move also signals a broader assertion of executive authority, effectively placing the White House in a role traditionally reserved for the Federal Reserve and intensifying debate over how far presidents can go in steering financial markets.

If the firms carry out the purchases as instructed — the timing and pace are still unclear — it ...