Bloomberg Plan: Merge Fannie, Freddie Into Government-Owned Entity

Democratic presidential candidate Mike Bloomberg announced Tuesday he would merge Fannie Mae and Freddie Mac into a single government-owned mortgage guarantor, as part of a larger package of initiatives “to reform Wall Street and put the financial system to work for every American.” An announcement from the Bloomberg campaign said merging Fannie and Freddie would “ensure taxpayers are properly compensated for loan guarantees and low-income households are well served.” Bloomberg said his plan would gradually merge Fannie and Freddie into a single, fully government-owned mortgage guarantor, “to ensure that taxpayers are fully compensated for the risks they are assuming – and that lower-income households are well served.” The plan calls for the guarantor to transfer downside risk to private investors…

Fed: No Change in Interest Rates

The Federal Reserve announced today that it is leaving interest rates steady, citing a growing economy and a strong jobs market. The Fed voted unanimously to keep the overnight lending rate at 1.5 to 1.75 percent. “The Committee judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation returning to the Committee’s symmetric 2 percent objective,” the Fed said in a statement. “The Committee will continue to monitor the implications of incoming information for the economic outlook, including global developments and muted inflation pressures, as it assesses the appropriate path of the target range for the federal funds rate.” Looking ahead, the Fed said, “In determining the…