Go Big with Gib Podcast
Go Big with Gib is a podcast for professionals, business owners and entrepreneurs to talk about their big wins.
Go Big with Gib Podcast
Ep. 82 Fed Response to Trump's Tax Bill
President Trump's $3.3 trillion tax and spending package has been signed into law, creating one of the most consequential economic shifts in US history that demands strategic preparation from investors and business owners.
• The Federal Reserve faces three likely response paths to the massive spending bill
• Interest rates may stay higher for longer or even rise again if inflation concerns grow
• Smart investors should lock in fixed-rate debt immediately to protect cash flow
• The Fed may accelerate quantitative tightening to counterbalance government spending
• Focus on real, cash-flowing assets like multifamily and medical real estate
• Global capital flows will create volatility in bonds, currencies, and equities
• Diversification and watching fundamentals over yield is crucial
• Strategic positioning beats reactionary decisions in building long-term wealth
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Welcome to the Go Big With Gibb podcast, where we talk to professionals, business owners and entrepreneurs about their big wins. Welcome back to this episode of Go Big With Gibb, the show where smart investors, entrepreneurs and professionals come together to sharpen their edge. 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. 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. How will the Fed respond? What does it mean for your business, your investments and your next move? Let's break down three ways the Fed will likely react and how you can play it smart.
Speaker 1:Number one interest rate adjustments. With $3.3 trillion in deficit spending, the Fed is going to be watching inflation like a hawk. That could mean higher interest rates for longer, or even another hike if demands heat up. 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. Number two balance sheet strategy. The Fed's already rolling back its balance sheet. That's quantitative tightening. Now, with all this new government spending, they may accelerate QT. That means selling off assets, pulling liquidity out of the system. This puts pressure on asset prices, especially in speculative sectors. Your move Stick with real assets, that cash flow, multifamily, medical real estate, buy quality. Forget the hype Number three global capital flows. As US debt piles up, global investors could flood into treasuries or they could start pulling back If they worry about long-term spending. Confidence could shake. That means volatility in the bond market, currency markets and equities. Your move Diversify your holdings, watch global demand for US debt and lean into markets with strong fundamentals, not just yield.
Speaker 1:Look, here's the bottom line. The Fed doesn't control the tax code, but it does control how capital moves and at what price. And right now you need to think ahead, not react. If you want to build long-term wealth, you need to position yourself strategically, smartly and deliberately. That's why I created my weekly newsletter. Every week I break down real estate, tax policy, fed strategy and show you how to apply it. All signal, no noise. 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. Thanks for listening. Until next time, I'm Gib Irons and this is Go Big with Gib. Thank you for listening to this episode of Go Big with Gib. If you haven't already, go follow us on social media at Gib Irons. We'll see you next time.