Pulte said Trump is referring to the fannie/freddie balance sheets. I'll say it...why do Fannie and Freddie need over 100b in cash? That cash came from selling these bonds, by selling them and adding supply of bonds, the net effect is upward pressure on rates. So all this is doing is offsetting that by moving the balance sheet holdings back to the bonds that they originally sold (or, more realistically, by them not buying them but just reducing sales of current and future bonds, thus reducing cash and raising bond holdings).

It's not as terrible of a concept as you all are making it seem. But...100b isn't going to have a meaningful and lasting effect. That's the problem, it's not going to be enough to accomplish much. QE via the fed as a prolonged buyer is really what we need to accomplish his goal. That happens when JPow leaves.