President Trump just signaled he may loosen the federal government's grip on mortgage giants Freddie Mac (FMCC) and Fannie Mae (FNMA), which would end one of the oldest fights on Wall Street.

"I’m giving very serious consideration to bringing Fannie Mae and Freddie Mac public," Trump wrote in a Truth Social post Wednesday evening.

Fannie and Freddie each play central roles in the US housing market by purchasing mortgages from lenders and repackaging them as securities. They both fell under government control during the 2008 financial crisis as mortgage defaults soared.

Hedge fund billionaire Bill Ackman and other prominent Wall Street investors long ago wagered that the companies would eventually be returned to private control, doing so by purchasing stock in Fannie and Freddie.

Investors hoped the transition would happen during the first Trump administration, only to see that effort fizzle. Now, Ackman and others believe a second Trump administration will get it done, even if it still takes some more time.

Ackman said at the end of 2024 on X that "there is a credible path" for the mortgage giants to be removed from government conservatorship and made into private companies within the next two years. That could result in an initial public offering in 2026.

Last night, he responded to Trump's new social media post with a thumbs-up emoji on X.

The stocks of Freddie Mac and Fannie Mae — semi-acronyms for Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association — have jumped 73% and 127% since the beginning of the year, according to Yahoo Finance data.

The percentage gains for each of those giants' stocks have been more than double those increases in the last 12 months.

“I will be speaking with Treasury Secretary Scott Bessent, Secretary of Commerce Howard Lutnick, and the Director of the Federal Housing Finance Agency, William Pulte, among others, and will be making a decision in the near future,” Trump said in his post.

The official who oversees the two mortgage giants, Federal Housing Finance Agency (FHFA) director Bill Pulte, reshared the president’s post on Wednesday. He has previously emphasized the need for safety and soundness of the mortgage giants before relinquishing the government’s governorship.

“Fannie and Freddie shouldn’t be in conservatorship forever,” Pulte told CNN in March. “But it’s critical to ensure any discussion about exiting conservatorship needs not only to ensure safety and soundness but how it would affect mortgage rates.”