Donald Trump loves low interest rates.
But he’s also worried about them.
Speaking on Bloomberg TV’s “With All Due Respect,” Trump said that as a property developer he has “always loved” low interest rates.
This is because low interest rates allow Trump’s businesses to borrow money cheaply. Low interest rates also bring down the interest payments on mortgages attached to his properties.
And given that a good chunk of Trump’s wealth derives from his real estate holdings, this is good for business.
But Trump also thinks that the Federal Reserve’s policy of keeping interest rates near zero is inflating a bubble that “could explode.”
Trump added that, “from the country’s standpoint, I’m not sure [zero interest rates are] a good thing, because I really do think we’re creating a bubble.”
And so while Trump also has a considerable stock portfolio — which has likely been aided by the Fed’s policies — he thinks these policies could be dangerous.
As for Fed chair Janet Yellen, Trump said that she is “more of the same,” and when asked by Bloomberg which Fed chair he liked the best, Trump said he liked Paul Volcker — who aggressively raised interest rates to fight inflation in the early 1980s — “a lot.”