U.S. Senate Passes One Big Beautiful Bill Act Amid Mixed Economic Reactions

The U.S. Senate narrowly approved the One Big Beautiful Bill Act (OBBBA) in a 51-49 vote, sparking both Optimism and criticism. The legislation introduces sweeping tax reforms and targeted incentives, with proponents arguing it will provide much-needed relief and prevent a fiscal contraction in 2026. The American Bankers Association has endorsed the bill, citing its potential to renew expiring provisions from the 2017 Tax Cuts and Jobs Act.

Nomura’s chief economist, David Seif, suggests the bill could stimulate short-term economic growth by encouraging business investment, though long-term effects remain uncertain. Citi analysts echo this sentiment, predicting the bill—combined with trade deals and looser Federal Reserve policies—could boost economic optimism in 2025.

Critics, however, warn of the bill’s projected $3 trillion addition to the federal deficit over the next decade. The Congressional Budget Office cautions that the increased debt could strain future financial management. Morgan Stanley acknowledges potential benefits for specific industries but underscores broader fiscal risks.