Treasury Secretary Scott Bessent attempted to explain President Donald Trump’s latest bid to make housing more affordable, but ended up stirring confusion instead.
Bessent, 63, joined Fox News’ Laura Ingraham, 62, on Thursday night to discuss Trump’s new order directing “representatives” to purchase $200 billion in mortgage bonds in an effort to bring mortgage rates down and make housing more affordable.
The 79-year-old president claimed in a Truth Social post that Fannie Mae and Freddie Mac are padded with billions of dollars in cash thanks to his decision not to sell the government-owned companies during his first term.
“Because of this, I am instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS,” he wrote. “This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable. It is one of my many steps in restoring Affordability, something that the Biden Administration absolutely destroyed.”
Federal Housing chief Bill Pulte said in an X post that “Fannie and Freddie will be executing” the order.
Ingraham heaped praise on the president for “hearing the people” amid growing calls for the Trump administration to address the cost-of-living crisis, an issue that took center stage in key off-year races that were swept by Democrats in November.
“They want these housing prices to come down. They’re artificially inflated. Is this all going to hold up?” she asked Bessent.
“Well, we don’t necessarily want the prices of houses to come down,” the Treasury secretary replied. “What we want is affordability to get better.”
A clip of the exchange made the rounds online, with several social media users left scratching their heads and simply saying, “Huh?” and “What?”
The Treasury Department did not immediately return a request for comment on Thursday.
After Democrats hammered down on affordability messaging and won high-profile races last year, Trump was quick to blast the issue that is top-of-mind for many Americans as a “hoax.”
As the midterm elections inch closer, however, Trump has begun to roll out measures to address affordability—while blaming the issue on his predecessor, Joe Biden.
On Wednesday, Trump announced that he was taking steps to ban institutional investors from snapping up single-family homes and urged Congress to codify it.
“For a very long time, buying and owning a home was considered the pinnacle of the American Dream,” he said on Truth Social. “It was the reward for working hard, and doing the right thing, but now, because of the Record High Inflation caused by Joe Biden and the Democrats in Congress, that American Dream is increasingly out of reach for far too many people, especially younger Americans.”
“People live in homes, not corporations,” he went on. “I will discuss this topic, including further Housing and Affordability proposals, and more, at my speech in Davos in two weeks.”
