President Trump has ordered government agencies to buy $200B worth of mortgage-backed securities.
Buying mortgage bonds pushes mortgage rates lower, which reduces monthly payments and improves housing affordability for buyers and existing homeowners.
Lower mortgage payments mean households keep more cash each month. That boosts savings and disposable income, which usually flows back into spending across the economy.
This $200B was idle cash sitting on the sidelines. Now it is being deployed into the financial system, increasing liquidity rather than tightening it.
More liquidity + lower borrowing costs are typically supportive for risk assets.
Historically, when housing stress eases and cash circulation improves, equities benefit first and crypto tends to follow.
🚨 WARNING: THE NEXT 12 HOURS WILL BE GIGA VOLATILE!
Two US events hit almost back to back.
Both can flip markets fast.
- Supreme Court tariff ruling - 10:00 am ET
Polymarket is pricing about a 77% chance the Court nukes Trump’s tariffs.
If that happens, the market instantly starts thinking about refunds on the $600B+ Trump keeps talking about.
- US jobs data - 8:30 am ET
Unemployment expectations: 4.5% vs 4.6% last.
If unemployment comes in higher, recession fear spikes. If it comes in lower, rate cuts get pushed out even more.
So either way, it’s not clean.
Weak data = fear Strong data = higher rates for longer
THIS IS THE TRAP.
Stocks whip. Bond rates whip. Crypto gets the violent move first because leverage gets cleaned first.
Manage risk. Don’t get liquidated into the headline.
I’ve studied macro for 10 years and I called almost every major market top, including the October BTC ATH. Follow and turn notifications on. I’ll post the warning BEFORE it hits the headlines.