Trump advisor Dick Morris recently highlighted two pivotal economic developments that could reshape the ongoing discourse around the “Big Beautiful Act.” According to Morris, Federal Reserve data reveals a robust 4.7% GDP growth in the initial two months of the quarter, significantly surpassing the Congressional Budget Office’s forecast of 1.8%. This unexpected surge suggests that if growth hits 3%, the federal budget could achieve balance, countering concerns about deficit expansion linked to the act.
Additionally, Morris pointed to a substantial decline in import volumes last month, dropping to less than half compared to the previous month. This trend underscores the efficacy of Trump’s tariff policies, which appear to be exerting sustained pressure on trade deficits. These economic indicators are critical as they directly influence voter sentiment ahead of the 2026 midterm elections, where fiscal performance remains a decisive factor.
The “Big Beautiful Act,” a comprehensive tax and budget proposal, narrowly passed the House and now faces scrutiny in the Senate. Republican leadership aims to finalize the legislation by July 4, emphasizing fiscal responsibility and economic growth as central themes in the upcoming political cycle.