Donald Trump told CNBC on Thursday he's for low interest rates unless inflation perks up, and he would probably replace Janet Yellen when her term is up as Federal Reserve chair.
"I have nothing against Janet Yellen whatsoever. I think she's been doing her job," the presumptive GOP presidential nominee said in a wide-ranging phone interview with "Squawk Box."
"I don't know her. She's a very capable person. People I know have a high regard for her. But she's not a Republican," he added.
Trump argued for low rates to keep the national debt of $19 trillion somewhat manageable. Calling himself "the king of debt" in his business dealings, he warned that the national debt would be troublesome if the cost of borrowing increases.
"We're paying a very low interest rate. What happens if that interest rate goes up 2, 3, 4 points?" he asked. "We don't have a country." The U.S. should refinance longer-term debt, he added. Republican presidential candidate Donald Trump Donald Trump: 25,000 people show up at my rallies because of one major issue
"We do need money to rebuild the infrastructure of the country," he said, railing against spending trillions of dollars in wars in the Mideast while American roadways, bridges, mass transit systems and airports are crumbling.
"The beautiful thing about infrastructure is it puts people to work, immediately puts people to work," he continued, "But it's got to be done properly, on time and on budget."
Trump repeated that he would renegotiate the nation's trade agreements, which he contends were hammered out by "political hacks" rather than the "brightest business people."
Echoing a common theme, he said China is killing U.S. trade by manipulating its currency. "So I'm not blaming China. I wish our people would think the same way. I blame our leadership. It's incompetent."
On immigration, Trump said his policies would not shrink the economy. In the campaign, he's talked about tough measures to make sure people come into the U.S. legally. He's also advocated building a wall along the U.S.-Mexico border.
Trump said if he doesn't win the White House, the Supreme Court would be stacked with liberals who would make the United States a "totally different country" — like Argentina or Venezuela.
Trump also gave a 40 percent chance that he would choose his running mate from his former rivals in the race for the nomination.
He said he has a good relationship with John Kasich, but the Ohio governor, who was the last to drop out, is unlikely to be his VP choice. "I not sure John even wants it."
Later in the article:
Trump also gave a 40 percent chance that he would choose his running mate from his former rivals in the race for the nomination.
He said he has a good relationship with John Kasich, but the Ohio governor, who was the last to drop out, is unlikely to be his VP choice. “I not sure John even wants it.”
Very Smart.
Trump gets it. He understands the trade issues, none of the other candidates get that. He understands the proper way to do a fiscal stimulus. He understands the importance of what the Fed is doing. He understands how dangerous our current level of debt is.
And notice that he is lowering expectations that his running mate will be one of the other candidates.
Low interest rates have killed seniors who depend on bond income. Not to mention savers, including young people trying to save for a deposit on their first house.
Certainty of future rates is the most efficient economically. Allows best allocation of resources.
ZIRP, NIRP and bailouts. Yippee!
He’s right about the national debt, but low interest rates are killing people’s ability to save. It’s a hard problem with no easy solutions.
Donald Trump told CNBC on Thursday he’s for low interest rates unless inflation perks up,
...
Fed rates should be in sync with market rates as indicated by the yield curve. Raising Fed rates for no other reason than to battle inflation doesn’t work.
Inflation is caused by the government devaluing the currency, either by manipulation, or in general by creating too much debt with a bloated government that can’t be supported by private sector productivity.