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Experts Warn Privatizing GSEs Risks Economic Stability

5/22/2025

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Summary

Story summary

Experts warn that complete privatization of Fannie Mae and Freddie Mac could have negative consequences and be a lengthy process.
Libby Cantrill from PIMCO raises concerns about the goals of releasing the GSEs from conservatorship.
Moody's has downgraded the GSEs' credit ratings, with potential for further declines post-conservatorship.
Cantrill highlights the GSEs' crucial role in supporting the economy during downturns.

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Story summary

Experts warn that complete privatization of Fannie Mae and Freddie Mac could have negative consequences and be a lengthy process.
Libby Cantrill from PIMCO raises concerns about the goals of releasing the GSEs from conservatorship.
Moody's has downgraded the GSEs' credit ratings, with potential for further declines post-conservatorship.
Cantrill highlights the GSEs' crucial role in supporting the economy during downturns.