Bloomberg.com reports that Jeffery Lacker, the President of the Richmond Federal Reserve Bank called for privatizing the two lenders. He is the first member of the Federal Reserve to come out against the Admininstrations strategy to maintain them as Federally backed and government sponsored companies owned by shareholders.
Lacker went on to say that the current market turmoil shouldn't keep the Feds from raising the interest rates. It is important to remove monetary-policy stimulus 'in a timely way'.
Lacker's comments echo the views of several former Fed officials, including Greenspan, that Freddie Mac and Fanny Mae should sever their links with the government.
