Trump Is Demanding That the Fed Lower Interest Rates. Guess What? Trump's Company Would Pocket Millions of Dollars.
August 24, 2019
BUZZFLASH NEWS UPDATE
Donald Trump, in his role as president, is demanding that the Federal Reserve lower interest rates, ostensibly to stimulate an economy showing signs of falling into a recession. However, as has been the case with his Washington, DC, hotel profiting from hotel stays by individuals and governments conducting business with the Trump administration, it is difficult to separate Trump’s expressed goals for the US economy from his personal profiteering.
According to an August 24 article in the Washington Post:
President Trump stands to save millions of dollars annually in interest on outstanding loans on his hotels and resorts if the Federal Reserve lowers rates as he has been demanding, according to public filings and financial experts.
In the five years before he became president, Trump borrowed more than $360 million via four loans from Deutsche Bank for his hotels in Washington, D.C., and Chicago, as well his 643-room Doral golf resort in South Florida.
The payments on all four properties vary with interest rate changes, according to Trump’s official financial disclosures. That means he has already benefited from falling interest rates that were spurred in part by a cut the Federal Reserve announced in July, the first in more than a decade — and his payments could drop by millions of dollars more annually if the central bank grants Trump’s wish and further lowers short-term rates, experts said.
Meanwhile, Trump is in a bitter feud with Fed Chair Jerome H. Powell over both interest rate reductions and Trump’s escalating trade war with China. Powell has publicly disapproved of Trump’s erratic and increasingly contentious trade war with China. It was just a day ago that Trump “demanded” that US companies stop doing business with China.
Trump dismissed critics of his call for US companies to leave China by telling reporters, during a “gaggle” before he left for the latest G-7 summit, “I have the absolute right to do that.”
Earlier, on Friday, the Grifter-in-Chief had tweeted: “Our great American companies are hereby ordered to immediately start looking for an alternative to China including bringing ...your companies HOME and making your products in the USA."
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Trump’s dictatorial stance is in wanton opposition to his own party’s championing of the “free enterprise system” as the holy grail of the US economy.
CNN reported criticism of Trump’s China stand-off:
Former Massachusetts Gov. Bill Weld, who has mounted a longshot bid against Trump for the 2020 Republican presidential nomination, called it "outrageous" that a US President would tell US companies how to conduct business.
"That he believes he can actually carry out such an outrage is the insanity of a would-be dictator."
His attack on the Fed and Fed Chair Powell are increasingly harsh, including his desire to have interest rates lowered. Trump has had an inherent conflict of interest since he assumed the presidency, given that he remains the sole owner of The Trump Organization. He has unconvincingly claimed that turning “the operations” of The Trump Organization over to his two eldest sons eliminates any potential personal gain from presidential actions and policies
Trump’s continual clamor for the lowering of Fed interest rates, however, has resulted in a windfall for his company and, therefore, personally for him. The Washington Post article estimated that Trump could pocket “more than $3 million in annual savings if the Fed dropped rates a full percentage point as Trump has demanded.”
Meanwhile, Trump, in his role as sole owner of The Trump Organization, is continuing to battle to block the release of financial information regarding the specific loans from the Deutsche Bank that The Washington Post cited. Curiously, the loans were made “through the bank’s private wealth division, rather than through traditional commercial lending units, according to public loan documents.”
Congressional Dems are seeking the Deutsche Bank information as part of their “preliminary” impeachment inquiry.
A Reuters August 23 article reported on the latest development of Trump’s efforts to keep his organization’s and his and his family’s personal financial records with Deutsche Bank and One Financial Corp out of the hands of Congressional investigators:
Lawyers for U.S. President Donald Trump asked a federal appeals court on Friday to block Deutsche Bank AG and Capital One Financial Corp from handing the financial records of the president's family and the Trump Organization to Democratic lawmakers.
The case, before the 2nd U.S. Circuit Court of Appeals in Manhattan, is one of several legal battles between the Democrats, who took control of the U.S. House of Representatives in January, and the Republican president, who is seeking re-election in November 2020.
In subpoenas issued in April, Democratic lawmakers asked the banks for records related to Trump, his adult children and the Trump Organization. U.S. District Judge Edgardo Ramos in Manhattan ruled in June that the subpoenas could be enforced.
The bottom line is that Trump’s presidency appears to not infrequently adopt policies and actions that personally benefit his bottom line.
Trump has taken to personally berating Fed Chair Powell. Asked by reporters on Friday if Powell should resign, Trump responded, ““If he did, I wouldn’t stop him.”
For Trump, it’s a question of money in the bank, in this case his profiting from his position as president of the United States.