Bill Ackman has expressed his support for Donald Trump’s plan to privatize Fannie Mae and Freddie Mac, touting it as a “big deal” that could be the biggest of the world. The comments led to significant gains in both companies’ stock prices, with Fannie Mae rising 18.4% and Freddie Mac rising 18%.
Ackman highlighted Trump’s approach to economic policy, including the deployment of tariffs to address immigration and drug trafficking issues with Mexico and Canada. He described this strategy as a key part of Trump’s “America First” policy.
While Ackman acknowledged uncertainty surrounding the privatization scheme, he believes it could be a watershed moment for the US housing finance system. Interestingly, former Treasury Secretary Steven Mnuchin had begun steps toward privatization during his first term but was unable to complete the process.
Fannie Mae and Freddie Mac are government-owned companies that support most US home loans. Their privatization could have significant implications for the country’s housing market.
Source: https://economictimes.indiatimes.com/news/international/us/first-big-decision-by-donald-trump-on-economy-the-president-elect-will-privatise-us-two-largest-government-owned-lenders-fannie-mae-and-freddie-mac-says-bill-ackman/articleshow/116859283.cms?from=mdr