4 views on one big beautiful bill

Now that President Trump’s One Big Beautiful Bill Act has been signed into law, investors are turning their attention to the impact that the massive tax and spending legislation could have on the U.S. economy and financial markets.

Among many other provisions, the law permanently extends large tax cuts initially adopted as part of the Tax Cuts and Jobs Act of 2017, reduces taxes on tips and overtime pay, and makes deep cuts to Medicaid, food assistance and other social safety net programs. The legislation, which encompasses much of President Trump’s domestic agenda, passed last week by a narrow margin of one vote in the Senate, and 218 to 214 in the House of Representatives. It was signed into law by President Trump on July 4.

Here are the 4 views from Capital group:

Tax cuts may spur growth, but rising debt is worrisome
Bond markets are adapting to higher debt levels
U.S. industrials sector stands to benefit
U.S. dollar’s direction hinges on economic conditions

This bill brings a mix of opportunities and challenges across different parts of the economy. Click here to read more in-depth on each view.

Curious what it could mean for your portfolio? Schedule your complimentary consultation with us today.

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