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.
🚨BREAKING: Polymarket shows a 76% probability that Trump’s tariffs will be ruled illegal.
The Supreme Court is expected to issue its decision on Friday.
If the Supreme Court rules against the tariffs, there are 2 big issues.
FIRST: REFUNDS. Tariffs already collected may have to be returned to importers. That removes cash from the system and worsens government finances.
SECOND: THE DEFICIT. These tariffs were projected to reduce the U.S. deficit by nearly $3 trillion over the next decade. If the ruling goes against them, that reduction disappears.
A ruling against Trump does not mean tariffs are permanently banned. It only blocks the current legal structure being used.
The President still has other legal tools to impose tariffs, but: • they are slower • more limited • and less efficient than the current setup
This creates near term uncertainty.
Trump has repeatedly argued that tariffs are supporting economic strength and stock market performance.
If the Court rules against the tariffs, that will be affected badly.
Over time, removing tariffs would reduce government revenue, ease inflation pressure and increase the likelihood of rate cuts.
#ASTER $ASTER coming back into the range after getting rejected at the 0.8130 level. We’re heading into support here — looking for a bounce at the POC.