The Trump administration is leveraging regulatory authority stemming from the 2008 conservatorship of Fannie Mae and Freddie Mac to significantly expand their mortgage bond holdings—a move that could inject roughly $200 billion into the market. This action reflects an attempt to stabilize the housing finance sector and ease lending conditions. The mechanism works through existing conservatorship powers that give these entities room to increase their portfolio sizes. Notably, the Treasury Department retains theoretical authority to modify the preferred stock purchase agreements governing these institutions, which could serve as a counterbalance to such expansionary moves. For macro observers tracking asset flows and policy shifts, this development signals how government agencies are responding to current economic pressures through the housing finance system.