President Trump announced on January 22 that the United States is deploying significant naval forces toward Iran amid escalating tensions over the Iranian government's crackdown on protesters and concerns about the country's nuclear program. Speaking to reporters aboard Air Force One while returning from Davos, Switzerland, Trump described the deployment as an "armada" while expressing hope that military action would not be necessary.

Naval Deployment Details

US officials, speaking anonymously, confirmed that multiple warships are heading to the Middle East in the coming days. The deployment includes key naval assets and defensive systems designed to protect American forces in the region.

"We have a lot of ships going that direction, just in case …I'd rather not see anything happen, but we're watching them very closely," Trump told reporters. The warships began moving from the Asia-Pacific region last week as tensions between the two nations intensified.

Iran Protest Crisis

The naval deployment follows widespread protests in Iran that began on December 28, 2025, starting as economic demonstrations in Tehran's Grand Bazaar before spreading nationwide. The Iranian government's response has been severe, resulting in significant casualties.

Trump claimed his threats prevented Iran from executing prisoners, stating the country cancelled nearly 840 planned hangings. "I said: 'If you hang those people, you're going to be hit harder than you've ever been hit. It'll make what we did to your Iran nuclear program look like peanuts'," Trump said, calling the cancellation "a good sign."

Nuclear Program Concerns

The deployment also relates to ongoing concerns about Iran's nuclear capabilities following US strikes against Iranian nuclear facilities in June. Trump warned that any attempt to resume nuclear activities would trigger additional military action.

"If they try to do it again, they have to go to another area. We'll hit them there too, just as easily," Trump stated. Iran must report to the International Atomic Energy Agency regarding the sites struck by the United States and the nuclear material previously located there.

Strategic Implications

The current deployment expands Trump's military options in the region, providing both defensive capabilities for US forces and potential offensive options if tensions escalate further. The US military previously conducted a major buildup in 2025 ahead of the June strikes against Iran's nuclear program, demonstrating the administration's willingness to use military force when deemed necessary.

President Trump's plan to improve housing affordability through large-scale mortgage-backed securities purchases has delivered only limited results, with economists questioning whether bond-buying measures can address the fundamental supply constraints plaguing the U.S. housing market.

Limited Impact Despite $200 Billion Commitment

The administration's mortgage bond purchase program, targeting up to $200 billion in securities, has produced marginal effects on borrowing costs according to Reuters analysis. While mortgage bond yields have narrowed slightly relative to U.S. Treasury yields, the overall impact on affordability remains constrained.

Economists broadly agree that insufficient housing supply, rather than financing constraints, represents the primary challenge facing the market. This structural issue limits the effectiveness of demand-side interventions like bond purchases.

Federal Reserve Balance Sheet Dynamics

Treasury Secretary Scott Bessent has indicated the mortgage bond purchases partly aim to counteract the Federal Reserve's ongoing reduction of mortgage-backed securities holdings. The Fed's portfolio has declined significantly as bonds mature without reinvestment.

However, central banking experts question this rationale, noting that balance-sheet policy impacts typically occur at announcement rather than during gradual reductions. Most analysts find little evidence that the Fed's measured pace of mortgage bond runoff has meaningfully elevated borrowing costs.

Market Headwinds Challenge Progress

Despite recent improvements in refinancing activity reaching multi-month highs, broader market forces threaten to offset gains from the purchase program. The 10-year U.S. Treasury yield has climbed to multi-month highs amid:

• Global bond market selloffs triggered by Japanese market turbulence
• Geopolitical tensions from trade threats and diplomatic confrontations
• Reduced demand for U.S. Treasury securities

These factors have the potential to push borrowing costs higher, undermining limited benefits from mortgage bond purchases.

Operational Details Remain Limited

The Trump administration has confirmed mortgage bond purchases are underway but disclosed few operational specifics. The Federal Housing Finance Agency has declined to provide information on purchase pace or total volumes completed.

Federal Reserve officials have expressed indirect skepticism about bond purchases resolving affordability issues, consistently pointing to structural supply constraints in major housing markets as the dominant factor maintaining elevated prices.

Outlook for Housing Affordability

While the Mortgage Bankers Association reports rates declined to their lowest levels since September 2024, affordability pressures remain significant across most markets. The administration's strategy may provide short-term marginal relief, but without meaningful housing supply expansion, material affordability improvements for most Americans appear unlikely.