Trump goes on $100 million bond-buying spree: Here’s what it could signal about future interest rates

·Donald TrumpTrump goes on $100 million bond-buying spree: Here’s what it could signal future interest ratesBy Marco Quiroz-GutierrezBy Marco Quiroz-GutierrezReporterMarco Quiroz-GutierrezReporterRole: ReporterMarco Quiroz-Gutierrez is a reporter for Fortune covering general news.SEE FULL BIO President Donald TrumpAndrew Harnik—Getty ImagesPresident Donald Trump has reportedly put $100 million into bonds since taking office in January, through a mixed bet on the debt of both big companies Meta and Depot as well as municipal governments and public entities

The move is notable because he has not placed his investments in a blind trust, un other presidents, but also because, as one expert believes, it signals that he expects interest rates to fall

President Donald Trump has gone on a bond-buying spree since taking office, reportedly sinking more than $100 million into debt issued by big companies and municipal governments a

Another bet of between $250,000 and $500,000 went into debt issued by Meta, based on a CNBC calculation of 690 transactions reported to the Office of Government Ethics since January and published Tuesday

He has also bought debt issued by local U.S. governments, gas districts, water supply districts, hospital authorities, and school boards, according to CNBC

The White House did not immediately respond to Fortune’s request for

Investors usually turn to bonds because they are less volatile than stocks

A bond is a loan that pays out interest to an investor, usually semiannually, over a defined period

Once that period ends and the bond reaches maturity, the investor gets their principal investment back

Trump’s bond-buying binge stands out because he, un other presidents, has not put his investments into a true blind trust

Otherwise, Trump’s bond purchases, whether directed by him or the person in charge of his finances, look the typical bet of a deep-pocketed investor—one who thinks interest rates are set to fall, said Russell Rhoads, a clinical associate fessor of financial management at Indiana University

Because bond prices typically rise when interest rates fall, it’s possible Trump made the bets hoping he could later sell the bonds at a fit

Rates are ly to drop faster for corporate bonds than for government bonds because they are riskier, said Rhoads

Trump’s insistent pressure for the Fed to cut rates could also be akin to him “talking his book,” added Rhoads. “You could take the way that he’s been pushing so hard for the Fed to cut rates as a portfolio manager going on CNBC and talking positive a stock that’s a big holding of theirs to try to get other people to buy it,” Rhoads told Fortune

Trump’s purchase of municipal bonds, issued by state and local governments, could also be part of the investment strategy, because the interest they yield is generally exempt from federal income taxes

A bond from an investor’s state will generally be exempt from state taxes

With the stock market near all-time highs, a preference for bonds could be wise. “It’s just a logical portfolio management move, as opposed to, you know, something that he knows rates that the rest of us don’t know,” said Rhoads

Trump has maintained ultimate control over his es and investments, while delegating responsibility for his empire to his sons Donald Trump Jr. and Eric Trump

The president and his immediate family have reportedly seen fits of $3.4 billion months into his term, especially from his crypto dealings, The New Yorker reported

The president and vice president are exempt from the main law aimed at preventing conflicts of interest by government officials

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