- Fed Chair nominee Jerome Powell is a strong proponent of injecting more private capital into Fannie and Freddie.
- He compared the Fannie/Freddie mortgage duopoly to only having two banks that offer deposit insurance.
- Powell believes that the implicit backing of the GSEs should be replaced with an explicit guarantee of GSE securities.
- He also supports swift GSE reform to end the “semi-permanent limbo” in housing finance.
