President Trump signs tax cut bill, job growth exceeds expectations, stock market hits record high.

From Yahoo Finance: 2025-07-03 12:39:00

President Trump is set to sign a significant tax cut bill, extending individual tax cuts until 2025. The BBB Act will also eliminate taxes on some income and provide a tax break on car loan interest for US-built vehicles. Trump is making progress on trade deals, with Vietnam accepting a 20% tariff on imports to the US.

Employers exceeded expectations by adding 147,000 new jobs in June, lowering the unemployment rate to 4.1%. The stock market hit a new record high, with investors relieved that Trump’s import taxes haven’t triggered inflation. The Federal Reserve may resume interest rate cuts later this year if inflation remains low.

Despite Trump’s momentum, risks lie ahead. The BBB bill contains cuts to safety net programs and adds $4 trillion to the national debt. The bill is unpopular, with 55% opposed and 29% in support. The tax cuts heavily benefit the wealthy, with 66% of savings going to the top 20% of earners.

The economy is showing signs of slowing, with job growth decreasing and wage growth slowing. Trump’s tariffs are increasing costs for businesses and consumers, with GDP growth expected to slow to 1%. The Fed may cut interest rates, but long-term rates may remain higher due to federal borrowing.

While Trump is currently enjoying a moment of success, challenges loom ahead. The buzz of tax cuts and trade deals may soon give way to economic headaches. Voters may become disillusioned as the full impact of the BBB bill and tariffs become clearer.



Read more at Yahoo Finance: This week in Trumponomics: Riding high