Ackman says Fannie-Freddie release is ‘politically critical’

Bill Ackman called on the Trump administration to release Fannie Mae and Freddie Mac from conservatorship, warning that a Democrat-controlled government could weaponize the entities against Republicans. 

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It is “absolutely politically critical for Fannie and Freddie to be released from conservatorship before the end of the Trump Administration,” Ackman said in a CNBC interview Thursday.

READ MORE: Bessent puts GSE exit on 2027-2028 agenda, boosting shares

Shares of Fannie and Freddie surged following the comments, rising as much as 22% and 25% in New York trading.

Ackman, whose Pershing Square has long held shares in the mortgage giants, said the positions have been a significant drag on the firm’s performance. 

Shares of Fannie and Freddie have tumbled around 60% this year as investors have grown impatient about the release of the firms from government control. Ackman said he remains “very bullish” on Fannie and Freddie. 

READ MORE: GSEs seek to support lenders with efficiencies as rates rise

Treasury Secretary Scott Bessent this week suggested the government may not address the mortgage giants’ ownership structure until 2027 or 2028 and said protecting mortgage rates remains the administration’s priority.