Donald Trump: This is why I'm for low interest rates

CNBC ^ | 0/05/2016 | Matthew J. Belvedere

[RayofHope]

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."

[mindburglar]

I asked Intolerant in NJ. Sorry got confused when you answered.

[jwalsh07]

No way, no how. You buy muni bonds, you take your chances.

[papertyger]

Interest over a number years used to mean something because it compounded and helped you save more money, faster. That’s the point. You too young to understand that concept?

No, I'm just smart enough to know that a young couple saving for their first house that relied on accrued interest to make a difference in their deposit wouldn't be young any more, and most likely getting ready to retire.

[Intolerant in NJ]

So municipal bond holders should pay for the bad decisions of government? - but there won’t be that many bond holders, municipal or otherwise, once it gets into people’s heads that Trump’s way of handling things once government spending gets out of hand is to stiff those who made loans to the government in good faith - until of course the low interest rates he claims to want climb for the taxpayer to cover as the government’s credit rating falls and it has to pay more and more to convince people to lend to it.....

[mindburglar]

Yes. It is called the free market. Nobody forced people to buy Puerto Rican munis.

Government spending has been out of hand for quite sometime. Last I checked that was not Trump’s doing.

You obviously understand how credit markets work. Why do you advocate tax payers bailing out the government? The government generates no income on its own.

Don’t like it? Don’t buy high risk bonds. Last I checked, an entity with $19Trl dollars in debt and income of $15trl was a junk credit.

Why should the tax payers of one junk credit entity bail out the bond holders of a defaulted entity?

Municipalities are the government. There are many layers to that beast.

[Inkie]

I only said that it helped, not that they relied on it. More importantly, low rates sent the expense of buying a home through the roof so, as they saved, they just fell farther behind. This is particularly true in CA, where I live. Lucky for me, I bought my home in 1990 and I’m staying put.

[Moonman62]

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.