Trump Hated Low Interest Rates. Then He Became President
Published: November 2, 2017 / Author: Bloomberg Businessweek
Donald Trump the presidential candidate denounced the Federal Reserve’s promotion of low interest rates as feeding a risky economic bubble. Now in the White House, regularly celebrating the stock market’s advances, he’s had a change of heart.
“I do like a low-interest-rate policy, I must be honest with you,” Trump told the Wall Street Journal in April, less than three months after taking office.
[Trump’s] regard for low interest rates may have improved after the expected inflation didn’t materialize and the economy continued to progress, said Jeffrey Bergstrand, a professor of finance at the University of Notre Dame’s Mendoza College of Business.
“There were a lot of naysayers, saying this was unprecedented; a lot of people saying this would cause hyper-inflation,” Bergstrand said. “But we know historically it worked.”