Market Insider

Trump, self-proclaimed king of debt, will have to fine-tune plans

Republican U.S. presidential candidate Donald Trump acknowledges supporters at a town hall campaign event in Hickory, North Carolina. March 14, 2016.
Chris Keane | Reuters

Donald Trump says he loves debt — and, after all, he is the king of debt.

But federal debt is different than Donald debt, especially if rates rise and it enters the danger zone.

Trump says this is something that has to be dealt with carefully, and his comments about the impact of rising yields on the national debt caused some Wall Streeters to wonder whether he would actually propose trying to renegotiate U.S. debt.

"No chance," said William Lee, head of North American economics at Citigroup. "There's no chance unless he pulls a miracle. The miracle he would have to strike is for Congress to restructure entitlements and reform the tax system. That's the holy grail of fiscal reform and he — even the great negotiator — is unlikely to do that."