Morning Economic Report 5-23-25

Economy update

The US tax and spending bill cleared the House floor yesterday by the margin of one vote in a major victory for President Trump. A variety of taxes will be slashed, federal budget cut and military spending and border reinforcement boosted. Investors are demanding higher yields to finance the growing deficit. The German statistics office revised up its 1Q GDP growth estimate because of healthy exports and frontloading ahead of US tariffs. European equities are unchanged, US bond yields are easing but remain elevated and the dollar is week.