trump’s company could save millions if feds reduce the interest rates
Business

Trump’s Company Could Save Millions If Feds Reduce The Interest Rates

President Trump is famous for taking bold decisions in his political career, but before that, he is a pure American businessman. He knows how to do a trade deal better than his competitors. Now experts are predicting that Trump might lots of benefits if Feds decides to cut the rate of interests. Trump has been in favor of a reduction of the rate of interest from a very long time, and he had been continually telling fed to do it. Even though in previous quarter Fed did cut rates and it has helped the country’s economy very significantly. Many businesses got what they needed the most, and that’s money.

However, if the feds go on the same path again, then Trump’s hotel businesses might be in a better position than ever. In the last few years, Trump has taken $360 million of loans from Deutsche bank for financing his hotel in Washington DC and Chicago. The payments of interests get affected by the decision of the Fed’s announcement about interest rates cut.

In the last quarter, the fed’s decided to go with Trump and did cut rate of interest, and that helped him to save millions of dollars in interests. The banks will permit him to pay back the loans quickly with lower borrowing cost in some cases. Trump is not managing his businesses, but he is looking at how his business empire is going on. Trump is undoubtedly looking at what options he has got to make it even more significant. Borrowing costs on big loans makes businessman worried and anxious because of the enormous penalties they have to pay if not returned. However, Trump might not have to worry about his hotel business borrowing costs. He should be more focused on managing a trade deal with China and other countries. Since those things are making feds to go on reducing interest rates.

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