Institutions: The "Big and Beautiful" bill has limited practical impact on the U.S. economy

Despite the U.S. government touting its fiscal plan as "a grand and beautiful bill," Lombard Odier struggles to find any reason for optimism. The institution believes that this budget has little stimulative effect at the macroeconomic level and may further worsen the fiscal outlook. Strategic analyst Filippo Pallotti pointed out that the bill is expected to increase the federal deficit by about $4 trillion over the next decade; if the tax cuts are made permanent, the deficit could be even higher. Although tariff revenue can alleviate fiscal pressure to some extent, the ratio of public debt to GDP is still expected to climb to 119% around 2034. Most of the tax cuts are unlikely to significantly boost consumption, and the largest spending cuts will be concentrated in healthcare and food assistance. Given the limited actual boost to economic growth from this budget, Lombard Odier maintains its previous forecast for U.S. economic growth: 1.3% growth in 2025 and 1.4% growth in 2026. [ChainCatcher]