Get Ready for Big, Beautiful Inflation

As is the case with many new regulations, the 2022 Inflation Reduction Act (IRA) had the opposite effect as what was implied by its name. President Trump campaigned on reducing inflation and bringing down prices.

But with major changes to the IRA now sealed into law under the banner of Trump’s “Big, Beautiful Bill” (BBB), what Americans are left with is an expansion of the money supply. That’s good news for gold, but terrible for American savers.

The updated bill guts some of the green subsidies and introduces new tax incentives, infrastructure spending, and targeted manufacturing credits. It’s been sold to the American people as economic stimulus, but it’s actually just deficit spending dressed up as nationalism.

Trump’s BBB increases federal spending without corresponding cuts. It’s paid for not by taxation or productive growth, but by borrowing. And that borrowing is increasingly being monetized, whether directly or indirectly. That means more Fed balance sheet expansion, and ultimately, more dollars in circulation.