Trump's "Big and Beautiful" Bill Passes: Biden and Harris Criticize, Financial Expert Offers Nuanced View

President Donald Trump's "Big and Beautiful" tax and spending bill has reportedly passed, sparking immediate criticism from current President Joe Biden and Vice President Kamala Harris. In contrast, a leading financial expert has offered a more detailed analysis of its economic implications.

Former President Joe Biden took to X (formerly Twitter) to condemn the bill, labeling it "reckless and cruel." He stated the bill "slashes Medicaid, taking away healthcare from millions of Americans. It closes rural hospitals, cuts food assistance for veterans and seniors. It drives up energy bills, and could lead to massive Medicare cuts, all while adding $4 trillion to the deficit. All of this, just to give massive tax breaks to billionaires."

Former Vice President Kamala Harris echoed these sentiments, asserting that Republicans in Congress "voted to devastate millions across our nation – kicking Americans off healthcare, closing hospitals, canceling food assistance, and raising costs."

Economic Implications: A Financial Expert's Take

Gene Goldman, Chief Investment Officer at Cetera Investment Management, provided a differing perspective, focusing on the bill's potential economic effects. Goldman acknowledged that the bill "provides clear benefits for businesses and households, which often supports corporate earnings and stock prices."

However, Goldman also highlighted concerns, noting that the Congressional Budget Office (CBO) expects the bill to "add approximately $3 to $3.4 trillion in debt over the next decade." He warned that this could necessitate "larger Treasury issuances, which has already sparked caution in the bond market, evidenced by rising bond yields. Additionally, these higher deficits could fuel inflation expectations."

From a sector-specific viewpoint, Goldman anticipates that cyclical sectors are likely to benefit. He specifically identified:

• Energy companies, due to the removal of green energy subsidies.

• Industrial companies, on account of increased infrastructure spending.

• Financials,citing reduced uncertainty, general deregulation, and a steeper yield curve.

• Consumer discretionary industries, which could see a boost from lower taxes.

This analysis from Cetera Investment Management, a firm providing investment advice and market perspectives, suggests a mixed outlook for the bill's impact, balancing potential economic stimulus with concerns over national debt and inflation.

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