Markets Reacting Negatively To Trump Tax Bill: Politico

As congressional Republicans advanced their sweeping tax package in recent months, many fiscal hawks in the party believed they had a powerful ally: cautious titans of finance who had begun signaling that their appetite for U.S. debt might not be unlimited.

Prominent figures such as JPMorgan Chase CEO Jamie Dimon and billionaire investor Ray Dalio spoke out in favor of fiscal discipline. I Photo: Bridgewater Associates

But in the end, Wall Street proved to be little more than a speed bump, Benjamin Guggenheim reported for Politico.

In passing the One Big Beautiful Bill Act last week, GOP leaders brushed aside a series of warnings about the risks of adding several trillion dollars to the national debt.

Instead of seizing a late-stage opportunity to steer the country toward fiscal sustainability, Republicans opted to push through costly new tax cuts—prioritizing short-term rewards and President Trump’s agenda over long-term concerns about fiscal calamity.

The episode revealed how even Wall Street’s historically powerful voice has faded in the current political climate.

Prominent figures such as JPMorgan Chase CEO Jamie Dimon and billionaire investor Ray Dalio spoke out in favor of fiscal discipline.

But many other financial leaders stayed silent on the broader economic implications, instead lobbying for extensions to tax breaks that would promote growth—and often benefit them personally.

Rather than sending a “big, beautiful” signal of fiscal restraint to the bond markets, Republicans appear to have sparked the opposite reaction.

Yields on 10-year Treasuries have risen roughly 18 basis points over the past week, as investors digest not only tariff-related uncertainty but also question whether either political party is capable of managing the $36 trillion national debt.

“If one of the goals was to calm the bond market down, I wouldn’t take much comfort from the past couple of days,” said economist Ed Yardeni, who famously coined the term “bond vigilantes” in the 1980s to describe investors who dumped government bonds in protest of unsustainable fiscal policy.