'US is going to hit the wall': Wall Street sounds alarm over Trump's 'One Big Beautiful Bill'

US financial industry leaders have warned that the US economy is headed to difficult times with President Donald Trump’s ‘One Big Beautiful Bill’.

They have said that the bill will take the national deficit to unsustainably high levels, affect growth, and weaken the US dollar. As the bill is being pushed at a time when Trump’s tariffs have already raised fears of an economic crisis, they have also criticised the direction of the administration’s trade policies.

Even though Trump has continued to praise the bill, it is set to add $2.4 trillion to the national deficit over the next decade and will deprive 9.2 million people of government-supported health insurance and 4 million people of food assistance, according to the Congressional Budget Office (CBO).

Even several Republican leaders, particularly in the Senate, have come out in opposition of the bill. Industry leaders who have supported Trump, such as hedge fund Citadel’s CEO Ken Griffin, have also criticised the bill.

“The United States’ fiscal house is not in order. You cannot run deficits of 6 or 7 per cent at full employment after years of growth. That is just fiscally irresponsible,” said Griffin at a conference organised by Forbes.

‘We’re going to hit the wall’

BlackRock CEO Larry Fink said at the same event that the United States was “going to hit the wall” unless the US economy grew quickly enough to offset the deficit that tax cuts and government spending in the bill is expected to bring.

Fink said, “We have a pending tax bill that’s going to add $2.3-$2.4 trillion on the back of that [existing $36 trillion debt]. If we don’t find a way to grow at 3 per cent a year, we’re going to hit the wall.”

Fink said that the national debt would “overwhelm” the country if economic growth continues as it is and the bill is passed.

Fink further said that the dollar is set to weaken if the policies continue as they.

“Importantly, 25 per cent of the US Treasury market is owned by foreigners. That’s not a good situation when we are now battling many countries related to tariffs. And, so, you’re starting to begin to see a weakening in the dollar,” said Fink.

In addition to questioning the rationale of resuming tax cuts “when we have a fiscal deficit that is this big” rejected Trump’s approach to trade.

“Why do we aspire to bring back to the United States jobs that are actually moving out of China into lower-cost jurisdictions? Why are we aspiring to be the nation of the lowest cost and the lowest-paid workforce in the world? That makes no sense to me,” said Griffin.