Wall Street IS Worried about the ‘Big…Beautiful…Bill’….

Wall Street bankers and executives are privately warning the Trump administration that the tax bill moving through Congress could stoke investor anxiety about rising deficits, push up U.S. borrowing costs and damage the broader economy, according to more than a dozen people familiar with the matter.

House Republicans this month approved a measure projected to add $2.3 trillion to the national debt over the next decade, primarily by extending tax cuts from 2017 — and it would add more than $5 trillion in debt including interest costs and likely future extensions, according to the nonpartisan Committee for a Responsible Federal Budget. That legislation, which would also beef up immigration enforcement and defense spending, is President Donald Trump’s top legislative priority.

The Senate is due to take it up soon.

But recently, a growing number of figures from the financial world have expressed private concerns that such an expensive bill could rattle the U.S. bond market, a cornerstone of the global financial system and the national economy. Most have been reluctant to raise their worries publicly, instead passing them along in smaller meetings or through trusted confidants, said the people familiar with the warnings, most of who spoke on the condition of anonymity to discuss sensitive talks….

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By the Way?

The federal government spent $2.4 trillion from January through April 2025 – up $166 billion from January through April 2024, according to new estimates from the Congressional Budget Office (CBO). Tax receipts in April pushed borrowing for the first four months of the year $5 billion lower than last year.  

CBO estimates the U.S. borrowed $1.1 trillion in the first seven months of Fiscal Year (FY) 2025.

The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget: 

CBO’s estimates make clear that we are continuing to spend more in 2025 than we did last year. Since the beginning of 2025, the federal government has spent $2.4 trillion — $166 billion more than in the same four months of 2024. Because of strong tax receipts in April 2025, the deficit is down a modest $5 billion in the first four months of this year compared to last year.

We have borrowed $1.1 trillion in the first seven months of FY 2025. We are still very much on track to borrow close to $2 trillion this fiscal year….

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