Shares of Fannie Mae and Freddie Mac shot higher on Wednesday after President Donald Trump said they would retain their government guarantees even after “going public.” “I am working on TAKING THESE AMAZING COMPANIES PUBLIC,

President Trump on Tuesday pledged the government would continue its guarantees for mortgage giants Fannie Mae and Freddie Mac, even as it moves toward possibly giving up control of the companies. Why it matters: Trump's promise may soothe long-standing nerves about what might happen to mortgage rates in a world where Fannie and Freddie no longer had government backstops.

One of the chief concerns of taking Fannie Mae and Freddie Mac private is how it would influence mortgage rates and could increase their costs. President Donald Trump’s promise of an implicit