Ten31 Timestamp 904,148
After four years of the Biden administration pushing the limits of Modern Monetary Theory with Build Back Better, the Green New Deal, and Activist Treasury Issuance, the Trump administration and Congressional Republicans said “hold my beer” this week with the passage of Trump’s own jumbo-sized, triple-B spending plan, the Big Beautiful Bill. As Trump continues to publicly attack Fed Chairman Jerome Powell’s decision to maintain benchmark interest rates and the administration teases the announcement of a more, ahem, accommodative Fed Chair, it increasingly looks like the plan is to pretty explicitly and transparently pin yields and let nominal growth rip. Historically, such an environment has been very kind to hard assets without sovereign liability – it might make sense to get some just in case Trump does exactly what he’s telling you he’s going to do.
