IMF says supports rescue of Fannie, Freddie

WASHINGTON (Reuters) - Measures to rescue Fannie Mae and Freddie Mac "are going in the right direction", the International Monetary Fund said on Thursday, as lawmakers consider legislation to backstop the troubled mortgage finance giants. "The announced measures on Fannie and Freddie are going in the right direction and are consistent with approaches that the fund has supported," IMF spokesman David Hawley told a regular briefing for reporters. "We agree that public-sector intervention is warranted, accompanied by improved supervision," he added. Hawley said while the IMF did not comment on individual institutions, it had become more pessimistic on the outlook for U.S. economic growth because of developments in the housing sector. "We have been saying the U.S. housing sector has had a decisive influence on developments in the... [read full story]