The US president, Donald Trump, is now working on a different agenda. As the president worked up measures to bolster the US economy via a stringent tariff policy, he is now on the path towards introducing another groundbreaking economic element. This element is packaged in the form of a comprehensive economic bill, dubbed as “one big beautiful bill” by the president himself. The bill included comprehensive budget details, including cuts to Medicaid and SNAP benefits and an increased defense budget. However, this bill also poses a threat to the US debt ceiling and may end up boosting the debt by nearly $5 trillion. This measure has divided the banks and associations, with some calling this bill a boon, while others are labeling it as unsustainable and messy.
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Banks That Support This Bill
Trump’s Big Beautiful Bill has started to divide the banking entities already, with major banks coming out to support the bill. In a letter published by the American Bankers Association, OBBB is undoubtedly one of the finest bills presented in a long time.
“I think the OBBB would almost unquestionably be good for the US economy. Over the next couple of years, compared to passing nothing. The most important thing OBBB does for the next few years is renew most of those expiring tax provisions. Preventing a major and sudden fiscal contraction from occurring… Provisions of OBBB allowing for faster business expensing of capital investments may raise investment over the next couple of years. Though likely at the expense of investment in later years.” Said David Seif, Nomura’s chief economist for developed markets. (CNBC)
In addition to this, Citi strategists have also been singing praises about Trump’s big, beautiful bill.
“In the near term, trade deals (UK, China, eventually Japan, India, Europe, etc.). And the passing of the (net stimulatory) Big Beautiful Bill in July should improve growth sentiment,” Citi experts wrote.
Banks That Criticize The Big Beautiful Bill
While leading banking entities have come forward to support Trump’s OBBB, banks such as the nonpartisan Congressional Budget Office and Morgan Stanley have raised concerns over the rising fiscal deficit that the bill brings to the table.
“It is fiscally irresponsible, significantly increasing budget deficits and debt even when accounting for growth.” Erica York, vice president of federal tax policy at the Tax Foundation’s Center for Federal Tax Policy, told CNBC
Musk Challenges Trump Over OBBB
In a new development, Elon Musk has pledged to launch a new political party dubbed the America Party if Trump’s OBB bill is launched in the market.
What’s the point of a debt ceiling if we keep raising it?
— Elon Musk (@elonmusk) July 1, 2025
Musk stated that the bill is playing a pivotal role in increasing the US debt ceiling, making it unsustainable for the US economy.
If this insane spending bill passes, the America Party will be formed the next day.
— Elon Musk (@elonmusk) June 30, 2025
Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE.
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