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Trump Has $340 Million of Debt Linked to Powell's Rate Decisions

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Trump Announces Nomination of Powell to Lead Fed

President Donald Trump owes Deutsche Bank AG about $340 million of debt with interest rates that will rise or fall depending on the future policies of Jerome Powell, the new Federal Reserve chair Trump nominated on Thursday.

While many of his Trump Organization’s largest loans have fixed interest rates, others are tied to the prime rate or Libor, the London interbank offered rate. Those borrowing costs fluctuate with the federal funds rate set by the central bank. Higher rates would make Trump’s loans more expensive.