Trump floats taking Fannie Mae and Freddie Mac public as deficit fears grow

• Trump said he's considering taking Fannie Mae and Freddie Mac public.
• The move would privatize the mortgage giants, which have been under government control since 2008.
• Critics have said privatizing the companies could increase mortgage rates.

President Donald Trump said Wednesday he was "giving very serious consideration" to taking Fannie Mae and Freddie Mac public and would make a decision soon.

"Fannie Mae and Freddie Mac are doing very well, throwing off a lot of CASH, and the time would seem to be right," Trump wrote in a post on Truth Social.

The president said he would speak to Treasury Secretary Scott Bessent, Secretary of Commerce Howard Lutnick, and the Director of the Federal Housing Finance Agency, William Pulte, as well as others, regarding the decision.

The White House did not respond to a request for comment from Business Insider.

Taking Fannie Mae and Freddie Mac public would mean removing the mortgage giants from the government conservatorship they have been under since 2008 and privatizing them.

Previous attempts, including under Trump's first term, have been made to remove the companies from the government's control. Critics say the move could lead to higher mortgage rates.

During his confirmation hearing in January, Bessent said that "no conservatorship should be indefinite. However, any actions pursued should be carefully designed and executed." He also told Bloomberg in February that the decision to release the firms would depend on the impact it would have on mortgage rates.

Pulte, who heads the agency that oversees Fannie Mae and Freddie Mac, told CNN in March that privatizing the companies was not a top priority.

"Fannie and Freddie shouldn't be in conservatorship forever," Pulte said. "But it's critical to ensure any discussion about exiting conservatorship needs not only to ensure safety and soundness but how it would affect mortgage rates."

BI previously reported that shares in the firms have increased dramatically this year and could soar even further if the conservatorship ends. Analysts at Pimco said re-privatizing Fannie Mae and Freddie Mac could be good for shareholders but could lead to increased costs for borrowers.

Trump's comments on taking Fannie Mae and Freddie Mac public come as fears over the federal deficit continue to grow. The president is pushing major legislation through Congress that would add trillions to the deficit.

Bankers have estimated that the government could make hundreds of billions by selling its shares in the companies, The Wall Street Journal reported.