However the concept is gaining momentum in political and monetary circles, particularly after Bessent urged on a podcast that the federal government’s stakes in Fannie and Freddie may ultimately be included in a proposed US sovereign wealth fund.
That remark rapidly fueled hypothesis. Hedge fund supervisor Invoice Ackman, a longtime supporter of re-privatizing Fannie and Freddie, stated on social media that the thought has potential, so long as it respects present shareholder claims.
Stifel Monetary CEO Ronald Kruszewski argued within the Monetary Occasions that folding the federal government’s stakes right into a wealth fund may “bolster the monetary stability of the nation” and probably result in a $1 trillion fund by 2040.
Mortgage bond strategists at JPMorgan Chase additionally weighed in, urging traders to take the dialogue critically — although cautiously.
Fannie Mae and Freddie Mac have been created by Congress to broaden entry to house financing, and though Fannie was privatized in 1968, each entities remained carefully tied to Washington. Throughout the 2008 monetary disaster, the federal government spent practically $190 billion to stabilize them, placing them beneath conservatorship.
