In the news

February 2, 2024

Why the U.S economy is doing so well 

The Jan. 29 front-page article “U.S. recovery outpaces other nations’” missed one major reason the U.S. economy is growing, and it’s thanks to Fannie Mae and Freddie Mac. The article underscored U.S. consumer spending, but that is the result of the fact that almost 60 percent of U.S. homeowners have a fixed-rate mortgage under 4 percent. In other major world economies, without a secondary mortgage market, banks issue short-term, floating-rate mortgages that have crushed consumers, including in Canada, Norway and Britain. But not in the United States, thanks to Fannie and Freddie.

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