TSX runs higher on rate cut expectations
Investing.com -- Democratic senators Elizabeth Warren, Cory Booker, and Chuck Schumer have urged Trump administration officials to halt plans to sell shares of mortgage giants Fannie Mae and Freddie Mac, expressing concerns that such a move could lead to higher mortgage rates.
In a letter sent Friday morning to Federal Housing Finance Agency Director William Pulte, the senators requested that he prioritize housing affordability rather than focusing on other matters, including the mortgage fraud allegations against Federal Reserve Governor Lisa Cook that President Trump has cited in his efforts to remove her from office.
President Trump has repeatedly called for the Federal Reserve to lower its benchmark interest rates. This week, he stated that the housing market would improve once Cook is removed and he secures a majority on the Fed.
Financial analysts have suggested that privatizing Fannie Mae and Freddie Mac could potentially drive up mortgage rates if it alters market expectations about government intervention during financial difficulties.
Treasury Secretary Scott Bessent has indicated that the administration is proceeding cautiously with the sale of Fannie and Freddie shares to prevent mortgage rates from increasing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.