Elon Musk's DOGE Likely Most 'Underestimated' Part Of Trump Administration, Says Morgan Stanley's CIO: 'Most Bullish Thing' That Could Happen To US Economy

Morgan Stanley's chief investment officer Mike Wilson has suggested that the Department of Government Efficiency (DOGE), led by Elon Musk, could play a pivotal role in revitalizing the US economy. This comes amid ongoing discussions about government spending and economic growth.

What Happened: Wilson said in a CNBC interview that the bank’s optimistic outlook involves a reduction in government size, which could lead to increased unemployment and prompt the Federal Reserve to lower interest rates.

Wilson noted that DOGE has already pinpointed tens of billions in government waste.

He believes that achieving a balanced federal budget could spur market growth in 2025, similar to the economic boost following President Clinton’s 1994 budget cuts.

“Probably the most underestimated part of the administration is DOGE. I think there's a lot of skepticism on this, but the reality is that's possibly the most bullish thing that could happen," he said.

He stressed that while specific budget cuts aren’t necessary, slowing expenditure growth is vital. The U.S. national debt stands at $36.2 trillion, having risen by nearly $2.1 trillion in the past year.

“We just need to freeze spending, we don't really need to cut a lot of spending," Wilson added.

Why It Matters: The recent decision by President Donald Trump to halt penny production reflects DOGE’s influence on fiscal policies. This move followed Musk’s department highlighting the inefficiency of penny production, which cost taxpayers $179 million in 2023.

Moreover, Elon Musk’s ambitious target to cut federal spending by $4 billion daily by 2026 could lead to a 30% reduction in government spending, excluding interest and Social Security benefits.

This initiative involves notable Silicon Valley figures, including Andreessen Horowitz co-founder Marc Andreessen and Uber Technologies Inc. co-founder Travis Kalanick.

Additionally, Musk has advocated for implementing blockchain technology within the Treasury Department to address payment irregularities, underscoring his commitment to efficiency and transparency.

Read Next:

• Mark Zuckerberg Follows Elon Musk’s Footsteps As Meta Reportedly Plans Major Investment Into AI-Powered Humanoid Robots

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock