President Trump suggested to his chief economic adviser, Gary Cohn, last year that the government should print more money to help eliminate federal debt, according to an excerpt from veteran journalist Bob Woodward’s new book— “Fear: Trump in the White House.”
The legendary Watergate reporter claims that Cohn told Trump that the Federal Reserve was likely to increase rates during his first term in office.
“We should just go borrow a lot of money, hold it, and then sell it to make money,” Trump reportedly said in response.
Woodward writes that Cohn was reportedly “astounded” by Trump’s suggestion, which he reportedly said illustrated a “lack of basic understanding” about how federal debt works.
According to the book, the then-president-elect told Cohn in 2016 that the country could simply get rid of debt in eight years by printing more money.
“Just run the presses — print money,” Trump suggested.
Woodward wrote that Cohn responded by explaining to Trump how printing more money is thought to lead to inflation and could be catastrophic for the fiscal health of the U.S.
“It was clear that Trump did not understand the way the US government debt cycle balance sheet worked,” Woodward wrote.
Vanity Fair reports that Cohn called Trump’s intelligence level that of an “inbred tanning bed.”