Core Viewpoint - The "one big beautiful bill" passed in the House on May 22, with a potential Senate vote in June, aims to significantly increase the U.S. fiscal deficit over the next decade, addressing structural issues like income inequality and re-industrialization, while also facing global geopolitical competition [1] Group 1: Legislative Impact - The bill includes tax cuts, spending reductions, an increase in the debt ceiling, and policies related to defense and immigration [1] - A combined version of the bill is expected to be completed by July 4, aligning with Trump's expectations [1] Group 2: Fiscal Implications - The legislation is likely to lead to a substantial increase in the U.S. fiscal deficit over the next ten years [1] - The U.S. may not have the objective conditions to effectively reduce the deficit in the medium to long term due to structural issues [1] Group 3: Market Reactions - Following the increase in the debt ceiling, a wave of U.S. debt issuance is anticipated between July and September [1] - This situation may compel the U.S. to accelerate monetary and financial policy adjustments, such as initiating quantitative easing (QE) and expediting SLR exemptions to provide liquidity to the U.S. debt market [1]