Latest / Go Big with Gib Podcast / Ep. 82 Fed Response to Trump's Tax Bill
Transcript
- 0:00Speaker 1: Welcome to the Go Big With Gibb podcast, where we talk to professionals, business owners and entrepreneurs about their big wins.
- 0:06Speaker 1: Welcome back to this episode of Go Big With Gibb, the show where smart investors, entrepreneurs and professionals come together to sharpen their edge.
- 0:19Speaker 1: I'm your host, gibb Irons, and today we're talking strategy because President Trump's one big, beautiful bill has officially been signed into law.
- 0:27Speaker 1: It's a $3.3 trillion tax and spending package and one of the most consequential economic moves in US history, and now all eyes are on the Federal Reserve.
- 0:38Speaker 1: How will the Fed respond?
- 0:40Speaker 1: What does it mean for your business, your investments and your next move?
- 0:44Speaker 1: Let's break down three ways the Fed will likely react and how you can play it smart.
- 0:49Speaker 1: Number one interest rate adjustments.
- 0:51Speaker 1: With $3.3 trillion in deficit spending, the Fed is going to be watching inflation like a hawk.
- 0:57Speaker 1: That could mean higher interest rates for longer, or even another hike if demands heat up.
- 1:03Speaker 1: If you're holding floating debt or waiting to refinance, this is your moment, your move Lock in fixed rate debt, protect your cash flow and stay liquid.
- 1:12Speaker 1: Number two balance sheet strategy.
- 1:14Speaker 1: The Fed's already rolling back its balance sheet.
- 1:17Speaker 1: That's quantitative tightening.
- 1:18Speaker 1: Now, with all this new government spending, they may accelerate QT.
- 1:23Speaker 1: That means selling off assets, pulling liquidity out of the system.
- 1:27Speaker 1: This puts pressure on asset prices, especially in speculative sectors.
- 1:31Speaker 1: Your move Stick with real assets, that cash flow, multifamily, medical real estate, buy quality.
- 1:38Speaker 1: Forget the hype Number three global capital flows.
- 1:42Speaker 1: As US debt piles up, global investors could flood into treasuries or they could start pulling back If they worry about long-term spending.
- 1:51Speaker 1: Confidence could shake.
- 1:52Speaker 1: That means volatility in the bond market, currency markets and equities.
- 1:56Speaker 1: Your move Diversify your holdings, watch global demand for US debt and lean into markets with strong fundamentals, not just yield.
- 2:05Speaker 1: Look, here's the bottom line.
- 2:07Speaker 1: The Fed doesn't control the tax code, but it does control how capital moves and at what price.
- 2:12Speaker 1: And right now you need to think ahead, not react.
- 2:15Speaker 1: If you want to build long-term wealth, you need to position yourself strategically, smartly and deliberately.
- 2:22Speaker 1: That's why I created my weekly newsletter.
- 2:24Speaker 1: Every week I break down real estate, tax policy, fed strategy and show you how to apply it.
- 2:30Speaker 1: All signal, no noise.
- 2:32Speaker 1: So if you want to build tax smart income generating wealth, click on the link in the description below and sign up for my newsletter or book a call with me, gib Irons, at investwithgibcom.
- 2:43Speaker 1: Thanks for listening.
- 2:44Speaker 1: Until next time, I'm Gib Irons and this is Go Big with Gib.
- 2:47Speaker 1: Thank you for listening to this episode of Go Big with Gib.
- 2:54Speaker 1: If you haven't already, go follow us on social media at Gib Irons.
- 2:58Speaker 1: We'll see you next time.