US Debt Downgraded as "One Big Beautiful Bill" Sparks Bond Market Fury

The US House of Representatives recently passed the "One Big Beautiful Bill," a legislative package that includes substantial tax cuts for high-income earners and reductions in spending on social programs such as Medicare and Medicaid. This has prompted a negative reaction from the bond market, with yields on US government debt rising sharply. Moody's Investors Service has downgraded the US government's debt rating, citing concerns about the country's long-term fiscal sustainability. "The bond market is expressing a lack of confidence in the government's fiscal discipline," says Kyla Scanlon, a financial analyst. This sentiment is echoed in other global markets, with Japan also facing challenges related to its debt burden and inflation. The situation underscores the potential for significant economic consequences resulting from the bill's implementation.