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Trump is pushing new consumer-friendly policies ahead of the US midterms and it’s moving markets. Lower mortgage rates, credit card interest caps, and payment fee reforms could benefit consumers and retailers, but weigh on banks and financial stocks.

00:00 – Political Shift to Populism
Why Trump has suddenly turned to populist economic policies ahead of the November midterm elections, driven by fears of investigations and impeachment if Republicans lose control.

00:32 – Mortgage Rate Intervention
Trump instructs Fannie Mae and Freddie Mac to buy mortgage backed securities to push down mortgage rates, making homes more affordable and lifting market sentiment.

00:50 – Homebuilder Stocks Rally
US homebuilders respond strongly to falling mortgage rates, with Pulte up about 5 percent and Lennar up about 16 percent.

01:02 – Push to Increase Housing Supply
Trump pressures homebuilders to develop land faster and build more homes, aiming to increase supply and lower housing prices, likely leading to higher construction activity.

01:26 – Private Equity and Housing
Trump proposes banning private equity firms from buying single family homes, a popular move with voters but one with limited real economic impact as activity has already slowed.

02:04 – Credit Card Interest Rate Cap
Trump proposes capping consumer credit card interest rates at 10 percent, a major populist move that would help households but hurt banks.

02:22 – Bank Stocks Fall
Citibank, JP Morgan, and Wells Fargo decline as investors react to the threat of lower credit card profits.

02:29 – Swipe Fee Competition
Trump’s proposal revives a bill to increase competition in credit card swipe fees, putting pressure on Visa and Mastercard while benefiting retailers.

03:00 – Political and Market Outlook
Despite the populist push, Trump likely started too late, and Republicans are expected to struggle in the midterms, setting up years of investigations and political uncertainty.