Group 1 - The U.S. Treasury Secretary, Becerra, questions the Federal Reserve's judgment on interest rates, suggesting that the two-year U.S. Treasury yield indicates that the benchmark rate is too high [1] - Becerra emphasizes that the current actual interest rates are very high when adjusted for inflation, and he suggests that if the Fed does not lower rates, the potential cut in September could be larger [1] - The futures market indicates that traders expect the Fed to cut rates by at least 25 basis points in the September meeting, while no changes are anticipated in July [1] Group 2 - Becerra refrains from commenting on calls for Fed Chair Powell's resignation but suggests that the Fed should manage its spending like other agencies [2] - He hints at the possibility of Powell leaving the Fed after his term ends in May 2026, despite Powell's term as a governor lasting until 2028 [2] - Becerra notes a divergence in expectations among Fed policymakers based on their appointing authority, indicating a split between Trump-appointed officials and others [2] Group 3 - Becerra highlights that the upcoming legislation includes an increase in the federal debt ceiling, which he believes will support the government until 2027 [3] - The Treasury has been using special accounting measures to meet federal payment obligations without exceeding the debt limit, and plans to increase short-term Treasury sales once the legislation is signed [3] - He mentions that the debt management process is orderly, but acknowledges that the two-year Treasury yield will be considered in their strategies [3] Group 4 - Becerra states that decisions regarding debt maturity arrangements will be made in the coming months, with the next quarterly refinancing announcement expected on July 30 [4] - He avoids commenting on the White House economic advisor's claim that Trump policies will reduce the fiscal deficit by $11 trillion over the next decade, citing the difficulty of predicting long-term borrowing scenarios [4]

Group 1 - The U.S. Treasury Secretary, Yellen, questions the Federal Reserve's interest rate decisions, suggesting that the current two-year Treasury yield indicates that the Fed's benchmark rate is "too high" [2] - The current target range for the Federal Funds rate is between 4.25% and 4.5%, while the two-year Treasury yield is approximately 3.76% [2] - Yellen hints at the possibility of filling two vacancies on the Federal Reserve Board next year, despite Jerome Powell's term as a governor lasting until 2028 [2] Group 2 - The Treasury has been using special accounting measures to pay federal obligations within the statutory limit since January, and once the tax and spending bill is signed into law, it is expected that the Treasury will increase the issuance of U.S. debt to replenish its cash reserves [3] - Yellen indicates that the debt management process is systematic but will consider unexpected circumstances, particularly in light of the two-year Treasury yield suggesting high overnight rates [3] - The next quarterly refinancing operation is scheduled for July 30, which typically announces adjustments to the issuance strategy [3]

Group 1 - U.S. Treasury Secretary Scott Bessenet publicly questioned the Federal Reserve's judgment on interest rates, asserting that the two-year Treasury yield indicates that the benchmark rate is too high [1] - The current target range for the federal funds rate set by the Federal Reserve is 4.25%-4.5%, while the two-year Treasury yield has fallen to around 3.76% [1] - Bessenet suggested that the Federal Reserve should manage its spending like other agencies, in response to calls for Fed Chair Powell's resignation [1] Group 2 - Bessenet indicated that the legislation under review in the House includes a provision to raise the federal debt ceiling by $5 trillion, which would ensure fiscal operations continue until 2027 [2] - The Treasury Department has been using special accounting measures to maintain federal payment capacity within the statutory debt limit since January [2] - Bessenet mentioned that the debt management process is systematic and will consider unexpected factors, including the high overnight rates indicated by the two-year Treasury yield [2]

Group 1 - The CBO and JCT estimate that Trump's spending and tax reform plan, if implemented, will increase federal debt by $2.8 trillion over the next decade [1] - The CBO's latest assessment includes macroeconomic impacts, projecting a 0.5% increase in real GDP but a 0.14 percentage point rise in 10-year U.S. Treasury rates, leading to increased borrowing costs that outweigh tax revenue gains [1] - By 2034, the CBO expects public-held federal debt to rise by $3.3 trillion, reaching 124% of GDP, compared to the baseline forecast of 117% [1] Group 2 - The Senate is currently evaluating its version of the tax reform bill, which continues Trump's 2017 personal tax cuts and introduces new tax exemptions [2] - The House passed the bill with a narrow margin, while fiscal conservatives express concerns over its costs, and moderate Republicans from Democratic-leaning states demand an increase in the SALT deduction cap [2] - The Senate's version retains a $10,000 SALT deduction cap, significantly lower than the House's proposed $40,000 cap, leading to strong opposition from Republicans supporting SALT reform [2] Group 3 - The House version is viewed as the most fiscally prudent, while the Senate plans to use a "current policy baseline" for budget assessment, which may obscure the true costs of the bill [3]

Core Viewpoint - Elon Musk criticized the "Big and Beautiful" bill pushed by President Donald Trump, calling it "disgusting" and labeling supporting lawmakers as "shameful" [1][2][3] Summary by Sections Bill Overview - The "Big and Beautiful" bill aims to extend tax cuts for businesses and individuals from Trump's first term, introduce new tax deductions, increase defense spending, and raise the federal debt ceiling by $4 trillion [2][4] - The bill was narrowly passed in the House of Representatives on May 22, and is currently under Senate review, where amendments are expected [2][6] Financial Implications - The Congressional Budget Office estimated that the bill would increase the U.S. federal debt by $3.8 trillion, raising it to $36.2 trillion [2][6] - Musk warned that the bill would impose "overwhelming and unsustainable debt" on American citizens [2][4] Political Dynamics - Musk's recent criticism marks a shift from his previous disappointment with the bill, indicating a desire to test his political influence after leaving his government position [3][4] - Despite Musk's criticism, Trump has not publicly responded and continues to support the bill, recognizing Musk's influence on younger voters [4][5] Republican Response - Republican leaders in Congress have pushed back against Musk's views, indicating that his statements may intensify divisions within the Senate [6][7] - Some Senate Republicans are advocating for stricter controls on debt and deficit, suggesting that the current bill's proposed $1.6 trillion in spending cuts over ten years is insufficient [6][7] Democratic Reaction - House Democrats expressed support for Musk's stance, using his social media posts to bolster their position against the bill [7]