U.S. President Trump signed the National Defense Authorization Act into law on Thursday, marking a significant milestone in defense spending for fiscal 2026. The legislation approves a record-breaking $901 billion military budget—approximately $8 billion higher than initially requested by the administration.

This unprecedented defense allocation reflects heightened geopolitical tensions and represents nearly a 4% increase in spending commitments. Such substantial government expenditures typically influence broader macroeconomic conditions, including inflation pressures, fiscal deficit dynamics, and currency valuations. Observers tracking global economic trends and asset correlations are closely monitoring how these defense budget developments might affect monetary policy and capital allocation strategies across different asset classes.