Elon Musk's Department for Government Efficiency (DOGE) has unveiled a plan focused on accelerating GDP growth to stave off the US recession.
Amid Trump's tariff wars and rising US Treasury yields, the US economy looks to be in a tough spot, as Elon Musk's Department of Government Efficiency (DOGE) comes up with a plan to avoid a US recession.
Accelerating GDP growth is one way to avoid the US debt crisis, a tech billionaire close to the US president said. This means a clear 180-degree shift from cutting federal spending to increasing it.
Elon Musk Reveals DOGE's Plan to Avoid US Bankruptcy
As Trump's tariff war continues, the U.S. bond market remains hot as the yield on the 10-year Treasury rose to 4.5 percent, fueling growing fears of a U.S. recession. According to Kalshi's data, the chances of a recession in the United States rose to 43%.
Elon Musk has emphasized the importance of accelerating GDP growth in order to prevent the US from sliding into bankruptcy. Acknowledging $DOGE ’s efforts, he added:
"DOGE has done and will do great work to postpone America's bankruptcy day, but government malfeasance means that only fundamental improvements in productivity can save our country".
US President Donald Trump threatened the European Union with 50 percent tariffs on Friday, prompting a sharp drop in bitcoin and the broader crypto market.
On the other hand, reports suggest that the US and India may reach a trade deal in the next 7-10 days. This flip-flop with tariffs has recently caused huge volatility in global markets.
Elon Musk's Tesla, on the other hand, remains bullish on bitcoin, which has an asset class worth $1.25 billion.
Treasury Secretary Scott Besant pivots, will the Fed?
US Treasury Secretary Scott Besant has made a strong pivot from "we're going to cut spending" to "we're going to grow our way" amid growing concerns about the US debt. In his recent interview with Fox News, Besant said:
"We can grow the economy and control the debt. The important thing is that the economy grows faster than the debt. If we change the growth trajectory of the country, the economy, we will stabilize our finances and extend the way out."
On the other hand, Austin Golsby, president of the Federal Reserve Bank of Chicago, predicted that the US Federal Reserve could start cutting interest rates within the next 10 to 16 months.
After touching an all-time high above $111K, Bitcoin price rallied and is currently trading at $108,237, down 2.6%.