The S&P 500 is down 155.56 points, or 2.6%.
The council argues the economy would expand over the next four years at an annual average of about 3.2%, instead of the Congressional Budget Office’s expected 1.9%, and as many as 7.4 million jobs would be created or saved.Council chair Stephen Miran told reporters that when the growth being forecast by the White House is coupled with expected revenues from tariffs, the expected budget deficits will fall. The tax cuts will increase the supply of money for investment, the supply of workers and the supply of domestically produced goods — all of which, by Miran’s logic, would cause faster growth without creating new inflationary pressures.
“I do want to assure everyone that the deficit is a very significant concern for this administration,” Miran said.White House budget director Russell Vought told reporters the idea that the bill is “in any way harmful to debt and deficits is fundamentally untrue.”Most outside economists expect additional debt would keep interest rates higher and slow overall economic growth as the cost of borrowing for homes, cars, businesses and even college educations would increase.
“This just adds to the problem future policymakers are going to face,” said Brendan Duke, a former Biden administration aide now at the Center on Budget and Policy Priorities, a liberal think tank. Duke said that with the tax cuts in the bill set to expire in 2028, lawmakers would be “dealing with Social Security, Medicare and expiring tax cuts at the same time.”Kent Smetters, faculty director of the Penn Wharton Budget Model, said the growth projections from Trump’s economic team are “a work of fiction.” He said the bill would lead some workers to choose to work fewer hours in order to qualify for Medicaid.
“I don’t know of any serious forecaster that has meaningfully raised their growth forecast because of this legislation,” said Harvard University professor Jason Furman, who was the Council of Economic Advisers chair under the Obama administration. “These are mostly not growth- and competitiveness-oriented tax cuts. And, in fact, the higher long-term interest rates will go the other way and hurt growth.”
The White House’s inability so far to calm deficit concerns is stirring up political blowback for Trump as the tax and spending cuts approved by the House now move to the Senate. Republican Sens. Ron Johnson of Wisconsin and Rand Paul of Kentucky have both expressed concerns about the likely deficit increases, with Paul saying Sunday there are enough GOP senators to stall the bill until deficits are addressed.on steel and aluminum to 50% layered on still more worries for investors.
for issuing AI chip export control guidelines, stopping the sale of chip design software to China, and planning to revoke Chinese student visas.A report over the weekend that
contracted in May, although the decline slowed from April as the countrywith the U.S. to slash President Donald Trump’s