After an all-nighter, Trump’s “One, Big, Beautiful Bill” passed through the Senate and is now up to the Congress to pass the legislation before the 4th of July celebrations later this week.
Even though three Republicans defected from voting for the passage of their party’s proposal, the vote of confidence from Vice President Vance, tilted the scale and toppled the 50-50 vote split.
The bill was garnered harsh scrutiny from opposition forces, blaming the drafters that the entailed tax and spending policies are projected to add up to $3.3 trillion to the national debt of the nation and create an even larger deficit.
Kicking the can down the road to fulfil ambitious policy transformations in the capitalist nation without batting an eye on the mounting debt issue, has been a fun-fair like theme to observers, for more than four decades and this time is no different.
In the scenario where the US economy plunges into a deep recession in tandem with having enormous debt levels however, things may be different. Possibly that is why we have increasingly seen President Trump attacking the Chair of the Federal Reserve Jerome Powell, “directing” him to lower rates (and by an incredulous 200bps), and that is to somehow prevent the recessionary scenario from materializing under such conditions.
Technical Analysis
US10Y Chart – The US 10-year yield eases to 2month lows as Trump’s bill passes
Resistance: 4.50% (R1), 4.65% (R2), 4.80% (R3)
Support: 4.15% (S1), 4.00% (S2), 3.87 % (S3)