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Tue, Jul 1, 2025, 12:32 PM 2 min read
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NEW YORK (Reuters) -The Republican-controlled U.S. Senate passed President Donald Trump's sweeping tax-cut and spending bill termed the "big, beautiful bill" on Tuesday.
The measure, Trump's top legislative goal, passed in a 51-50 vote, after Vice President JD Vance cast the tiebreaking vote.
The megabill would extend the 2017 tax cuts that were Trump's main legislative achievement during his first term as president, cut other taxes and boost spending on the military and border security.
The Congressional Budget Office estimates it will add about $800 billion more to the national debt than the House of Representatives version. The bill now returns to the House for final approval.
The reaction of U.S. stocks, treasuries and the dollar has been fairly muted.
QUOTES:
RICK MECKLER, PARTNER, CHERRY LANE INVESTMENTS, NEW VERNON, NEW JERSEY:
"I think it's going to create some problems for the fixed income market as we continue to spend no matter which party is in power, and, ultimately, that's a negative for the stock market. But the reaction from investors in the short term is just that it's pro economic development, and they're not as worried about inflation, and they continue to buy stocks.
"It seems like investors have been very accepting of that risk. Clearly we keep increasing the deficit and longer-term investors have to be concerned about that."
ROBERT PHIPPS, DIRECTOR, PER STIRLING, AUSTIN, TEXAS:
"The market assumed it was ultimately going to happen. It's got to go to reconciliation now and there are very large differences between the Senate and the House version. The House tends to have the Freedom Caucus, which is the deficit Hawks. The Senate version actually adds a lot to the deficit, and they're using an accounting trick to make it look like it doesn't."
"The House will ultimately pass a bill because they'll have to because we have the debt ceiling we're going to bump up against ... I'm hoping that more reasonable heads will prevail and that they come up with something that's not so onerous to the outlook for the deficit and the U.S. debt load ... this is a very potentially damaging bill because of what it does to the deficit and the debt."
JAY HATFIELD, CEO, INFRASTRUCTURE CAPITAL ADVISORS, NEW YORK:
"There is no corporate tax cut, so it's not that great for capital formation, but it's great for certainty, and just to take the debt ceiling raised. It puts that risk behind us. But I don't think it's a huge upward catalyst (for markets)."
(Reporting by the finance and markets team; Editing by Alistair Bell)
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