Bessent Criticizes Boeing, Rejects Nvidia Stake, and Outlines Fannie-Freddie IPO
1. Boeing Faces Harsh Words
U.S. Treasury Secretary Scott Bessent hit out at Boeing, calling the company “crippled” after years of poor decisions. He blamed the firm’s huge share buybacks for weakening innovation and delaying much-needed upgrades in its aircraft programs. According to Bessent, Boeing focused too much on short-term profits instead of long-term stability.
2. No U.S. Stake in Nvidia
Bessent also dismissed the idea of the U.S. government taking a stake in Nvidia. He made it clear that the world’s most valuable AI chipmaker doesn’t need government intervention. Instead, he suggested Washington may look at other strategic industries like shipbuilding or defense, but not high-flying tech firms like Nvidia.
3. Fannie Mae & Freddie Mac IPO Plans
On housing finance, Bessent revealed that the Treasury is preparing for a massive Fannie Mae and Freddie Mac IPO. Banks to manage the deal will be appointed by September or October. The plan could sell 3% to 6% of the mortgage giants, raising at least $30 billion. He stressed the importance of careful timing to keep mortgage spreads stable and avoid any shock to the housing market.
Impact:
Bessent’s remarks may fuel investor caution on Boeing stock, ease speculation around a U.S. stake in Nvidia, and draw global attention to the upcoming Fannie-Freddie IPO.
