More layoffs at Fannie Mae; Fed cut off from private jobs data 

Staffing shakeups continued this week at Fannie Mae as the government-sponsored enterprise (GSE) eliminated dozens of positions. Meanwhile, Trump administration officials shared a timing update on plans to take Fannie Mae and Freddie Mac public.

Elsewhere in Washington, D.C., the Federal Reserve is shaping monetary policy mostly in the dark as the federal government shutdown continues to delay the release of key economic data — and the Fed already lost access to a major source of private jobs data before the weeks-long impasse began.

Layoffs at Fannie Mae

More than 62 Fannie Mae employees were laid off on Oct. 30, Federal Housing Finance Agency (FHFA) Director Bill Pulte announced. The move came after Pulte said he inquired about dozens of employees' job responsibilities, and a Fannie Mae manager "could not even tell me what his employees did."

The layoffs impacted staff in the GSE's operations, IT and DEI divisions, among others, Pulte said. He later appeared to celebrate the layoffs on social media, writing, "DEI HAS PASSED AWAY AT FANNIE MAE."

The news came one week after the abrupt departure of Priscilla Almodova, Fannie Mae's former president and CEO. COO Peter Akwaboah was promoted to acting CEO, while John Roscoe and Brandon Hamara were named co-presidents.

Clock ticks down to Fannie, Freddie IPO

After months of speculation on plans to take Fannie and Freddie public, Pulte suggested this may not occur as swiftly as initially expected.

In August, the administration was reportedly eyeing a 2025 IPO launch date — and that could still happen, Pulte said during an Oct. 29 appearance on the PBD podcast — but noted it may not happen until Q2 of 2026.

"If I was a betting man, I'd probably say Q1 — but it's totally up to the president," Pulte added.

Many economists and members of Congress have warned about the risks involved with GSE privatization. Lawrence Yun, the National Association of Realtors' chief economist, said consumers "can anticipate higher mortgage rates" and even "jumbo mortgage rate conditions" if Fannie and Freddie go public without a government-backed guarantee.

Fed faces data drought

While the Fed cut short-term interest rates on Oct. 29 as expected, Chair Jerome Powell warned against counting on another cut in December. The reason? Most of the economic reports the federal government typically releases are stalled due to the shutdown — and without those, it's difficult for the central bank to assess how the U.S. economy is doing.

But the Fed's data access struggles predate the shutdown. According to an Oct. 22 Wall Street Journal report, payroll company ADP stopped providing the Fed its data — which accounts for about 1 in 5 private workers — after Fed Governor Christopher Waller mentioned the company in an August speech.

Though it wasn't clear what caused the data sharing to end, the move has further clouded the Fed's view of labor market shifts.

NAHB-backed bill advances

A Senate committee has advanced the Fix Our Forests Act in a move applauded by the National Association of Home Builders (NAHB).

The bipartisan bill, a version of which passed in the House of Representatives earlier this year, aims to address the growing threat of major wildfires through "more proactive forest management policies," Sen. John Boozman of Arkansas explained in a news release.

If the bill becomes law, it will "help strengthen the nation's housing supply chain and promote affordable housing opportunities for all Americans," the NAHB added.

Now that it has advanced out of committee, the bill will go to the Senate floor for a full chamber vote.