Midterms may provide hope as President Trump favors more federal spending
Former White House Advisor Gary Cohn explained his strategy of selling President Trump on his $1.5 trillion infrastructure plan. It called for leveraging $200 billion of federal investment with the rest coming from state and local governments and private companies.
The Pitch: Cohn to Trump via Axios: “Think about when you’re putting up a building, you put down $50 million of your own money to leverage several hundred million.” Trump responded that he didn’t build with that much risk. Instead, he would borrow the first installment from one bank and borrow the rest from another bank. Cohn walked away and told associates, “I’m a 30% equity guy — Trump is 100% leverage.”
What comes next: Trump still wants to get this done. If the Republicans lose the House in November, expect him to work with the Democrats on a plan that favors increased federal borrowing over private investment.