Elon Musk’s DOGE Shares Plans To Avoid US Recession

Amid Trump tariff wars and rising US Treasury Yield, the American economy seems in a very tight spot, as Elon Musk’s Department of Government Efficiency (DOGE) comes up with a plan to avoid US recession. The tech billionaire who’s close to US President stated that accelerating GDP growth is one way to avoid the US debt crisis. This means a clear 180-degree shift from cutting down federal spending to increasing it.

Elon Musk Reveals DOGE’s Plan To Avoid America’s Bankruptcy

As the Trump tariff war continues, the US bond market remains heated as the 10-Year Treasury yield has spiked to 4.5%, raising growing concerns of US recession. As per the Kalshi data, the odds of a recession in the United States surged to 43%.

In order to prevent America from slipping into bankruptcy, Elon Musk has emphasized the importance of accelerating GDP growth. While acknowledging the efforts of DOGE, further adding:

“DOGE has and will do great work to postpone the day of bankruptcy of America, but the profligacy of government means that only radical improvements in productivity can save our country”.

US President Donald Trump threatened EU with a 50% tariff on Friday, leading to a sharp drop in Bitcoin and the broader crypto market. On the other hand, reports suggest that US India might reach a trade agreement in the next 7-10 days. This flip-flop with tariffs has led to strong volatility in the global markets recently.

On the other hand, Elon Musk’s Tesla continues to stay bullish about Bitcoin, holding $1.25 billion worth of the asset class.

Treasury Secretary Scott Bessent Pivots, Will The Fed Too?

US Treasury Secretary Scott Bessent has made a strong pivot from “we’re going to cut spending” to “we’re going to grow our way out” amid the rising US debt concern. In his recent interview with Fox News, Bessent said:

“We can both grow the economy and control the debt. What is important is that the economy grows faster than the debt. If we change the growth trajectory of the country, of the economy, then we will stabilize our finances and grow our way out of this”.

On the other hand, Austan Goolsbee, President of the Federal Reserve Bank of Chicago, has forecasted that the U.S. Federal Reserve may begin interest rate cuts within the next 10 to 16 months.

After hitting an all-time high above $111K, Bitcoin price reversed gains and is currently trading 2.6% down at $108,237.