Morgan Stanley’s chief investment officer Mike Wilson has praised the Department of Government Efficiency (DOGE), led by Elon Musk, for its potential role in revitalizing the US economy. In a CNBC interview, Wilson stated that reducing government size could lead to increased unemployment and prompt the Federal Reserve to lower interest rates. He also noted that DOGE has identified tens of billions in government waste.
Wilson believes that achieving a balanced federal budget could spur market growth in 2025, similar to President Clinton’s 1994 budget cuts. The U.S. national debt stands at $36.2 trillion, and Wilson suggests slowing expenditure growth is vital. He emphasizes that freezing spending rather than cutting it is key.
DOGE’s influence on fiscal policies can be seen in the recent decision by President Donald Trump to halt penny production, which cost taxpayers $179 million in 2023. Musk’s ambitious target to cut federal spending by $4 billion daily by 2026 could lead to a significant reduction in government spending.
Silicon Valley figures, including Marc Andreessen and Travis Kalanick, are supporting Musk’s initiative, while he also advocates for implementing blockchain technology within the Treasury Department to address payment irregularities.
Source: https://www.benzinga.com/25/02/43755208/elon-musks-doge-likely-most-underestimated-part-of-trump-administration-says-morgan-stanleys-cio-most-bullish-thing-that-could-happen-to-us-economy