Unlike in his first term, President Trump has been quietly buying corporate and municipal bonds since he returned to the White House in 2025.
In March alone, Trump reportedly carried out 175 financial transactions, most of which were bonds issued by states, counties, school districts and public agencies, according to disclosures required by the Office of Government Ethics (1).
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It’s estimated that the total value of bond purchases in his portfolio is around $337 million (2) — many of which are in sectors that could benefit from his policy decisions.
Trump also acquired Intel bonds after directing the federal government to acquire a 10% stake in the chipmaker, Reuters reports (3). And he purchased up to $2 million in Netflix and Warner Bros. Discovery bonds shortly after the announcement of an $83 billion merger (4).
These purchases, while not illegal, have raised concerns about potential conflicts of interest, though the White House has stated that these investments are managed by independent third-party financial institutions (2).
With Trump showing such a strong interest in bonds, should you, too?
A Federal Reserve regime change
Trump’s pick for Federal Reserve chair, financier Kevin Warsh, is expected to take over from current chair Jerome Powell, whose term ends on May 15. And while Warsh was handpicked by Trump, Warsh said he didn’t make any promises to get the job.
“The president never once asked me to commit to any particular interest rate decision, period,” Warsh said when being questioned by the Senate Banking Committee (5). “Nor would I ever agree to do so if he had.”
Since the start of his second term, Trump has berated Powell for not cutting interest rates more quickly. Doing so could help to boost economic activity, but it could also fuel inflation.
Warsh is considered hawkish, meaning he’s in support of stricter monetary controls. But he’s also become more open to cutting rates under specific conditions — like an AI boom that increases productivity (6).
As a long-time critic of the Fed’s large balance sheet, Warsh has said he wants “regime change,” which would include changing the way the central bank measures inflation (7) — though he’d need internal support to do so. Warsh, however, will likely be under intense pressure from Trump to cut interest rates despite the crisis in Iran that’s slowing growth and fueling inflation.
“Fed Chair nominee Warsh will probably be hamstrung delivering Trump the rate cuts the president wants because oil prices and inflation will remain higher than hoped for a long time,” Rob Morgan, senior vice president and market strategist with Mosaic, told CNBC (8).
The Fed held interest rates steady in its latest policy decision, maintaining the target range for the federal funds rate at 3.5% to 3.75% (9).
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How this could impact the bond market
Higher inflation could lead to a Fed rate increase, which aims to slow consumer spending in an effort to combat inflation. This increases the cost of borrowing, raising the rate on mortgages, auto loans and even credit card APRs.
While the rate has been coming down since pandemic-era highs, the crisis in Iran has added uncertainty into the mix. Skyrocketing fuel prices and a blockade of the Strait of Hormuz create upward pressure on inflation, which then puts pressure on central banks like the Fed to keep rates elevated.
Interest rates also directly impact the bond market.
When you buy government bonds and hold them to maturity, you receive a regular stream of interest income (often referred to as a coupon). But returns tend to be lower than other types of investments because you’re taking on a lower level of risk compared to corporate bonds or stocks.
Bonds have an inverse relationship with interest rates, meaning they move in opposite directions. In other words, lower rates cause bond prices to rise, making existing bonds more valuable. So when rates fall, bondholders — including Trump — see capital gains. However, in this type of environment, new bonds are issued with lower coupon rates, so new investments may be less lucrative.
If the Fed were to keep lowering rates, it could potentially be a good time to lock in higher, longer-term coupon rates, but it’s not certain that will happen with the ongoing crisis in Iran. And, considering the uncertainty around a potential Federal Reserve “regime change,” investors are currently in a bit of a holding pattern.
Despite this uncertainty — and despite the fact that stocks typically offer higher long-term returns than bonds — there are other reasons to include bonds in your portfolio. For example, they provide regular income, liquidity, diversification and tax efficiency.
Bonds can also serve as a hedge against a potential stock market correction, but if inflation remains sticky or ticks upward, it could hinder bond price appreciation.
Some may perceive this uncertainty as a risk, while others could see it as an opportunity. To make sure your portfolio is meeting your needs, it could be worth sitting down with your financial advisor to discuss your options.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Reuters (1),(3); CNBC (2),(7),(8); CNN (4); AP News (5); The Wall Street Journal (6); U.S. Federal Reserve (9).
This article originally appeared on Moneywise.com under the title: Trump has quietly bought up to $337 million in bonds — and his Fed pick Kevin Warsh could send their value soaring
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
