Donald Trump and Chicago Trump Tower (Credit: Getty Images and iStock)
The Federal Reserve’s decision to raise rates this week could cost the Trump Organization an extra $1 million in borrowing costs.
The organization has seen the interest on its debt service payments increase $6 million a year since the president was inaugurated in January 2017, according to an analysis from Bloomberg.
The Fed raised the benchmark federal funds rate to between 2.25 percent and 2.5 percent, which will increase the Trump Organization’s payments on some $340 million in variable-rate loans.
Trump took secured the loans from Deutsche Bank between 2012 and 2015 for the Trump National Doral golf course outside Miami and hotels in Washington and Chicago.
Wednesday’s rate hike will push Trump’s estimated annual borrowing cost on those loans to about $17.1 million, according to Bloomberg.
The Trump Organization has declined to comment on its borrowing.
In 2017, the Trump Organization’s revenue fell by a minimum of $45 million, according to Crain’s. Trump said he made $8 million on his Chicago tower in 2017. [Bloomberg] — John O’Brien
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