JPMorgan Doubts Elon Musk's Pursuit of D.O.G.E to Reform the Federal Reserve

JPMorgan has warned the Ministry of Effective Government (DOGE), led by Elon Musk, that it will face significant obstacles due to congressional spending control. Elon Musk's DOGE sparks controversy as JPMorgan doubts its feasibility JPMorgan Chase released a report on November 22 evaluating the newly established Department of Government Effectiveness (DOGE). Established under President-elect Donald Trump and led by Elon Musk and Vivek Ramaswamy, the department aims to rationalize federal operations and reduce wasteful spending. "In terms of government efficiency, President-elect Trump is expected to pursue a legislative program supporting administrative simplification. Part of this includes a new Government Efficiency Office (DOGE)," JPMorgan said, adding: We think that the department led by Elon Musk, with the goal of cutting government waste, will face difficulties in implementing this. Earlier this month, Trump said Musk and Ramaswamy "will pave the way" for his administration to "dismantle the government's bureaucratic machinery, cut redundant regulations, reduce wasteful spending, and restructure federal agencies". He noted, "The important thing is that we will eliminate massive waste and fraud currently existing in the entire $6.5 trillion annual government expenditure". Musk asserts that the Federal Efficiency Department can cut at least $2 trillion in federal spending, emphasizing the urgency of addressing what he calls "insane government spending" to prevent the United States from going bankrupt. "America is currently heading towards bankruptcy at an alarming rate," he emphasized, adding that "immediate action is needed to prevent the actual bankruptcy situation in the United States." JPMorgan explains why DOGE may encounter obstacles as follows: The key point is that the National Assembly controls the government's spending and DOGE is outside the National Assembly. The Ministry can make any proposals they want, but ultimately the majority of 60 votes in the National Assembly will make legislative changes. Global investment bank concludes: "Investors' main concern in 2025 is which parts of the Trump 2.0 agenda will be emphasized and which parts will fade."