Core Points - The Congressional Budget Office (CBO) predicts that the "Big Beautiful Plan" proposed by the Trump administration will increase the U.S. federal budget deficit by $2.4 trillion over the next decade, despite potential economic boosts that could offset some revenue losses [1][2] - Elon Musk publicly criticized the plan, calling it "disgusting" and claiming it would exacerbate the already significant U.S. budget deficit [2] - Republican leaders expressed shock at Musk's sudden criticism after he had previously pledged support for the party [3] Summary by Sections CBO Predictions - The CBO's latest forecast indicates that the "Big Beautiful Plan" will reduce federal revenue by $3.67 trillion and decrease government spending by $1.25 trillion, resulting in a net increase of $2.42 trillion in the budget deficit by 2034 [1] - Previous CBO estimates suggested a $2.3 trillion increase in the deficit due to the same plan [1] Political Reactions - Musk's comments were echoed by Democratic leaders, who criticized the Republican party for increasing the debt while in power [2] - House Speaker Johnson noted Musk's prior commitment to help the Republican party regain control of the House, highlighting the unexpected nature of Musk's criticism [3] Government Response - Trump administration officials have dismissed CBO's predictions as historically inaccurate, arguing that they fail to account for the economic growth resulting from tax cuts and deregulation [4][5] - The administration's stance is that rising GDP will alleviate debt burdens, with Treasury Secretary Basent predicting GDP growth exceeding 3% by next year [5] Impact of the "Big Beautiful Plan" - The plan includes extending tax cuts from Trump's first term, raising the SALT deduction cap, increasing the debt ceiling, and imposing work requirements on Medicaid [5] - CBO estimates that the plan will result in 10.9 million people losing health insurance, including 1.4 million with uncertain immigration status [6] - Additionally, 7.8 million people are expected to lose Medicaid coverage, with a total reduction in federal spending on Medicaid and the Affordable Care Act projected at $902 billion over ten years [6]

Core Viewpoint - The article discusses the criticism from Elon Musk regarding President Trump's large-scale tax and spending bill, which Musk describes as absurd and politically manipulated, warning that it could significantly increase the budget deficit to $2.5 trillion and burden American citizens with debt [1]. Group 1: Tax and Spending Bill - The large-scale tax and spending bill, referred to as the "beautiful bill," has been passed by the House of Representatives and is set for Senate review [1][6]. - The bill plans to reduce taxes by $4 trillion over the next decade while cutting at least $1.5 trillion in spending [1][6]. - Critics argue that the bill will severely impact healthcare policies and significantly increase federal debt [1][6]. Group 2: Elon Musk's Criticism - Musk expressed disappointment that the "beautiful bill" contradicts the efforts of the Office of Government Efficiency, which aims to reduce costs [4]. - He stated that the Office of Government Efficiency has become a scapegoat for all layoffs, indicating a disconnect between government actions and accountability [3][4]. - Musk humorously questioned whether a bill can be both "big" and "beautiful," highlighting skepticism about the bill's effectiveness [4]. Group 3: Political Reactions - Senator Joni Ernst faced backlash during a town hall meeting for her comments regarding cuts to healthcare subsidies, which some audience members claimed would lead to deaths [5][6]. - Ernst's subsequent apology was perceived as sarcastic, reflecting the contentious nature of the bill and its implications for public health [6].

Group 1 - US Treasury bonds rose ahead of the inflation data release, reversing the sharp decline following the US-China trade consensus, which reduced the likelihood of a global economic recession and diminished market expectations for a Federal Reserve rate cut [1] - The two-year Treasury yield fell three basis points to 3.98%, outperforming European counterparts, while the ten-year yield traded at 4.45%, significantly higher than the month's low of 4.12% [2] - Economists predict that the US April CPI year-on-year growth will remain at 2.4%, with core CPI growth expected to hold steady at 2.8% [1][2] Group 2 - Goldman Sachs now expects the Federal Reserve to begin cutting rates in December rather than July, with the probability of a recession reduced to 35% from 45% [2] - Deutsche Bank economists estimate that the final tax plan could keep the US deficit as a percentage of GDP around 6.5% in the coming years [3] - Market participants are uncertain about the feasibility of extending the 2017 tax cuts without exacerbating the US deficit, with discussions set to begin in the House of Representatives [3]