President Donald Trump has repeatedly doled out attacks on Federal Reserve Chairman Jerome Powell insisting that he cut the Federal interest rate. His insistent pleas might have something to do with the fact that if the rates fall, Trump and his companies stand to make MILLIONS.
Before Trump became President Trump, he borrowed $360 million in four loans from Deutche Bank for his Chicago and DC hotels and his Florida golf resorts, says a report from the Washington Post. Because those loans have variable interest rates and not fixed rates, the lower the rates are cut, the more money Trump stands to gain.
The report points out that ANY reduction, even just a quarter-point reduction, which is predicted to happen this fall, will save Trump $275,000 just on the Doral golf resort loan. Bloom
Bloomberg News reports, however, that the takeaway could be even higher- that for every quarter-point reduction Trump could see $850,000 in savings each year, meaning he would be amassing more than $3 million in savings annually if the rates drop a full point as Trump has been demanding.
The first move toward a full percentage point cut from the Fed came in July when short-term rates were cut by a quarter of a percentage point. Of course, seeing financial communities prepare for a recession is a bit of a contrast to Trump’s constant claims that the economy is booming.
Powell said Friday at a Federal Reserve symposium that even with the Fed cutting rates, it might not be enough to save the economy from Trump’s controversial trade policy which prompted Trump to take to Twitter with his reply, saying, “we have a very strong dollar and a very weak Fed,” and called Powell as an “enemy.”
As usual, the Fed did NOTHING! It is incredible that they can “speak” without knowing or asking what I am doing, which will be announced shortly. We have a very strong dollar and a very weak Fed. I will work “brilliantly” with both, and the U.S. will do great…— Donald J. Trump (@realDonaldTrump) August 23, 2019
Trump is known for going to any length necessary to protect and grow his businesses- he’s even used money from his charity to pay off business debts and settlements, filed lawsuits to get out of making payments, and filed for bankruptcy six different times.