Banks say it’s good for U.S. economy

US President Donald Trump’s “great, beautiful bill” – or officially, a great beautiful bill of invoice action (Obba) – a controversial part of the legislation, but some banks say that the economy needs to be a shot in the arm.

On Saturday, he proceeded late in the US Senate with 51-49 votes and brought great spending measures closer to the President’s desk.

Characterized by tax reforms and targeted incentives and Federal Expression to be added to the predictionHe triggered warnings from credit agencies and criticisms.

However, some banks say they think the bill can increase the US economy.

In a letter published on Sunday American Banning Association “Strongly supports” for the “very needed tax reduction” in which they submit many provisions within the bill.

Considering that Nomura’s chief economist David Seif, the chief economist for developed markets, will rise significantly after the end of many provisions under the 2017 tax invoice, “I think the OBBB will be almost indisputable for the US economy in the next few years.” He said.

The tax deductions and the labor law enacted in 2017 include lower income tax rates, more children’s tax loans and generous deductions for enterprises. Without the congress action, many provisions within the scope of the law will end until the end of 2025 – a shift analysts said that households could reduce the consumption of households and corporate investment. He said that the short -term charm of the “Great Beautiful Invoice” was capable of preventing a sharp financial contraction in 2026.

“The most important thing that OBBB has done for the next few years is to renew most of the tax provisions and to prevent a large and sudden financial contraction.” He said. “The provisions of OBBB, which allow capital investments to spend faster business spend, may increase investments, even if it is probably at the expense of investment in the next years.”

Citi strategists, likewise, said that the bill will be an economic tail wind in a note published on Wednesday. “In the near term, trade agreements (England, China, Japan, India, Europe, etc.) and the passing of a great beautiful bill in July (net stimulant) should improve the growth sense.”

Citi also said that the Federal Reserve will loosen its monetary policy and support the sense of growth, and “BBB delta is largely financed by tariff revenues, we do not see a bond awake moment in 2025/2026.”

The debt burden is a central source of concern for many critics. Non -Partizan Congress Budget Office Projects BBB will add at least 3 trillion dollars For the next decade, the federal exposure.

Despite Morgan Stanley recorded in early June He said that the pro -growth tax provisions of the bill can benefit businesses and individuals and key equity sectors such as communication services, industry and energy and increase concerns about financial sustainability.

Similarly, the Tax Foundation Federal Tax Policy Center Federal Tax Policy Vice President Erica York said, “Even when taking into account growth, financial irresponsible, significant increasing budget deficits and debts,” he said.

York said that most of the tax cuts are complex and poorly designed, that they give tax cuts to certain workers and left others out.

Furthermore, a large number of narrow -adapted tax rules, including the bill, the internal income service has contributed to the administrative burden of an already stretched agency, forms, guidance and enforcement vehicles should spend more time and resources to update, he said.