The 'Big Beautiful' Bill was officially passed by the US House of Representatives
Early morning of July 4 (Vietnam time), the US House of Representatives officially passed the large-scale tax cut and spending increase bill proposed by President Trump - also known as Big and Beautiful Bill.
- The bill passed 218–214, with all Democrats opposing it and two Republicans “turning the tables.”
- Content: tax cuts for businesses and individuals, and increased spending on infrastructure and defense.
👉 IMF warns: The bill could worsen the budget deficit and public debt. The US Congressional Budget Office forecasts an increase in public debt of $3.3-4 trillion.
👉 Fitch forecasts: US Debt/GDP could hit 120% by 2026.
US House of Representatives Passes President Trump's "Big, Beautiful Bill"
Mixed reactions from US politicians
- Biden: criticized the bill as “reckless and cruel,” hurting low-income people, cutting healthcare, food for veterans and the elderly.
- Kamala Harris: called the bill “pushing people off health care.”
Nonfarm payroll data weaker than expected – gold drops in shock
- The US private non-farm payroll released on July 3 only reached 74K, lower than the forecast of 105K and down sharply from the previous period of 137K.
- However, lower-than-expected unemployment and modest wage gains kept Fed expectations July rate cut overshadowed.
👉 Consequences:
- Gold down nearly 1% to $3,325/oz.
- USD and bond yields increased again, putting pressure on precious metals.
Other international news
- US – Vietnam reached a reciprocal trade framework agreement. Trump pledged to reduce tariffs on Vietnamese goods, in return Vietnam would open its doors more to US goods.
- Israel airstrikes southern Lebanon, regional tensions have not cooled down.
- Chosen criticized the US for taking advantage of the Quadrilateral Security Dialogue, continuing tensions on the peninsula.
- Trump – Saudi Israel-Saudi Arabia peace talks.
- Trump declared: will allow migrant workers to stay if sponsored by farmers – a surprise move amid immigration restrictions.
Suggested investment strategy:
- Yellow: Be cautious in the $3,300 – $3,350/oz range. Watch inflation and Fed news.
- USD: Possible short-term increase. Potential USD/JPY, USD/VND pairs.
- Stock: Prioritize consumer stocks – infrastructure benefits from public spending.
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