Trump to Privatize Fannie Mae and Freddie Mac, Predicts Billionaire

Hedge Fund Billionaire Predicts Trump Will Privatize Fannie Mae and Freddie Mac

Hedge fund billionaire Bill Ackman believes President-elect Donald Trump will privatize two of the nation's biggest government-owned mortgage lenders, Fannie Mae and Freddie Mac.

In a post on X, Ackman, a major shareholder of Fannie Mae, said there is a "credible path" to remove the companies from conservatorship in the next two years with Trump at the helm. He believes the move would generate "$300 billion of additional profits to the federal government" if successful.

Ackman acknowledged that there remains "a high degree of uncertainty" about the ultimate outcome. However, he is confident that Trump will get the job done, calling it "the biggest deal in history."

Following Ackman's post, shares of both companies enjoyed a boost, with Fannie Mae rising 18.4 percent and Freddie Mac up 18 percent. The companies are two of the biggest backers of mortgages in the U.S.

Following the housing market collapse in the 2008 crash, the companies suffered huge losses and were placed in conservatorship under the Federal Housing Finance Agency.

Ackman is a Trump ally who previously celebrated the president-elect's proposals to introduce trade tariffs on products from Mexico and Canada by 25 percent. He believes Trump will use tariffs as a weapon to achieve economic and political outcomes in the best interest of America.