The US Senate begins voting today on President Donald Trump’s controversial tax and spending bill—legislation that will dramatically increase America’s debt burden and reignite inflation, warns Nigel Green, CEO of global financial advisory giant deVere Group.
“This bill is economically reckless and globally dangerous,” says Nigel Green. “If it passes, we will see an immediate escalation in US borrowing needs and upward pressure on inflation. The consequences for the US and the wider global economy will be severe.”
The legislation extends Trump-era tax cuts and significantly increases military and border spending while slashing funding for healthcare and social programs. Independent forecasts now estimate it will add at least $1.2 trillion to the federal deficit over the next decade, pushing the US debt-to-GDP ratio above 130%.
“America’s debt trajectory is already one of the steepest in the developed world,” explains Nigel Green.
“This bill accelerates it. More government borrowing means more Treasury issuance, higher yields, and higher borrowing costs across the board for businesses, homeowners, and consumers.”
Yields on 10-year US Treasuries are already trading near their highest levels since 2022. The Congressional Budget Office has warned that interest costs on the national debt will become one of the largest single line-items in the federal budget if this legislation passes.
“Investors will, rightly, demand higher returns for holding US debt, which means higher interest rates at every level of the economy,” he says.
“This increases mortgage costs, corporate borrowing expenses, and reduces consumer and business investment. It’s a direct threat to US growth and jobs.”
Beyond debt, the inflationary risks are mounting. With inflation still running above the Federal Reserve’s 2% target, and core inflation proving sticky, adding this level of fiscal stimulus will likely push prices higher again.
“This bill throws more fuel on an inflation fire that isn’t fully under control,” says Nigel Green.
“You don’t stimulate an already overheated economy with unfunded tax cuts and massive new spending commitments. This will make the Fed’s job harder, forcing them to either delay rate cuts or even resume tightening. That’s bad for financial markets and bad for consumers.”
The global fallout could be widespread. The US dollar edged lower in early trading today on growing market concern over the bill’s fiscal impact. Credit rating agencies, already warning about America’s fiscal trajectory, may soon act.
“If the US suffers another downgrade, as it did with Fitch in 2023, global markets will respond sharply,” notes the deVere CEO.
“US Treasuries sit at the heart of the global financial system. Any loss of confidence in US creditworthiness sends shockwaves through currencies, equities, and fixed income markets worldwide.”
Emerging markets face particular risk as rising US yields could trigger capital flight, increase external debt costs, and pressure currencies.
“This is a global risk event in the making,” adds Nigel Green.
“Policymakers in Washington are playing with fire. The scale of additional borrowing will export volatility to every major asset class and economy.”
Nigel Green says investors must brace for the impact.
“This isn’t just a US problem—it’s a global economic threat,” he concludes. “Every investor, institution, and government should be preparing now for the financial consequences of this bill.”
What the heck does it have to do with Zambia? We got our own minerals and authentic friends, namely China, Namibia etc
The Big Ugly Bill is the equivalent of Modern Dictatorship in a so called most powerful nation in the world on paper.
But Trump is succeeding in almost everything he is doing. He is a genius and he is making life better for all and promoting peace through strength, especially in American. The USA is inflation is at its lowest, the stock markets at a record high, his tariffs are bringing in lots of cash into the economy; countries that were vehemently against them are begging to sign a deal with him, he has created more jobs than any president in the history of the USA, companies are running back to the USA…
… he has just settled a 30 year war in Congo, almost about to have a cease fire between Israel and Hamas, destroyed the nuclear site in Iran; a 12-day war and a cease fire thereafter, he has single-handedly destroyed the fake news and corrupt politicians, etc all this in just less than 6 months. God bless President Trump.
Tell Congo to never come back for help. The truck going to Congo have always been damaging Zambian roads.
you forgot other things… He stopped the ukraine and Russia war, he aquire rare minreals from ukraine paying back what USA spent on Ukraine. He is getting Canada and greenland, Already taken back the gulf of mexico, secured rare minerals from DRC for future Americans. About to get the gulf
@Redo I dont think your downvoter got you. Thats why I upvoted you kikikikikiki!