"White House stock god" hypes up stocks again: Trump says the market value of Fannie Mae and Freddie Mac could reach $1 trillion

After the US stock market opened on Friday, the common shares of Fannie Mae and Freddie Mac surged, following President Trump’s remarks that the two mortgage financing giants might be worth “$1 trillion.” However, as market skepticism grew, both companies later gave back most of their gains.

On Thursday afternoon, Trump mentioned Fannie Mae and Freddie Mac during a speech at the White House. He said:

“Fannie Mae and Freddie Mac are very likely to have $1 trillion in value.”

Earlier this week, after Trump appointed Bill Pulte—head of the Federal Housing Finance Agency (FHFA)—as Acting Director of National Intelligence, Fannie Mae and Freddie Mac’s stock prices fell. The appointment raised doubts in the market about the long-standing plan to sell government-held shares.

On Friday, KBW analyst Bose George stated, “We continue to recognize the recently released valuation data.” He pointed out that the combined fair value of the two companies is currently about $200-250 billion.

At Friday’s opening, Fannie Mae rose as much as 10.4%, Freddie Mac as much as 9.7%, but both sharply pulled back, ending with Fannie Mae down 0.74% and Freddie Mac down 1.16%. Still, as concerns mount over the pace at which the Trump administration may advance the related plans, both companies have declined about 30% so far this year.

According to a previous article by WallstreetCN, Intel, Micron, and Dell all surged, backed by presidential holdings or public statements. The market is highly focused on who will be the next “lucky one” to be named by Trump.

The central debate is whether the two companies can break free from US government control

The market remains deeply doubtful about whether the government will push for the two companies to “break free from government control.” Since the US housing market crash triggered the financial crisis, both companies have been subject to supervision and control by the Washington government.

Wedbush Securities analyst Michael Piccolo recently wrote in a report:

“Pulte’s appointment as Acting Director of National Intelligence further strengthens our view: before the 2026 mid-term elections, it is unlikely there will be any meaningful ‘IPO activity,’ namely Treasury’s sale of converted Fannie Mae and Freddie Mac warrants.”

He also questioned whether Pulte has enough energy to drive complex regulatory and capital restructuring work, which is necessary for the two companies to recapitalize and exit conservatorship. He added that this move could also be part of future FHFA leadership changes.

Market optimism about future stock offerings once sent the two companies soaring in 2025. In August last year, reports said the White House was studying a public offering plan, which could bring the combined value to about $500 billion or more, and planned to sell 5-15% of shares, raising about $30 billion. By March this year, well-known investor Bill Ackman (a longtime major shareholder) even described the two housing finance giants as “ridiculously cheap.”

Nevertheless, BOK Financial mortgage strategist Christopher Maloney said on Friday he does not believe: “I’ll see Fannie Mae and Freddie Mac exit government conservatorship in my lifetime.”

He pointed out the companies’ complicated legal status, lack of political resources needed for reform, and the potential impact reforms might have on the US mortgage market are all major obstacles.

Maloney added:

“Don’t forget, Fannie Mae was originally created as a government agency during the New Deal era. Returning these government-supported enterprises (GSEs) to the government system isn’t a significant change—it’s really returning to their original position.”

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