Tech billionaire Elon Musk recently signaled that the Department of Government Efficiency (D.O.G.E.) could be a solution to US inflation. Now, Musk has posted about what he believes is driving the inflation, and what actions could rein in rising prices. This is especially true given the fact that the Tesla CEO has leaned into his efforts to reduce federal expenditures from the new department created under Donald Trump.
Will D.O.G.E. end the US Inflation?
The US inflation has so far stressed out the investors’ morale in a global context recently. Yet even as inflation hovers near the ceiling of the US Federal Reserve’s 2% target range, the central bank has lowered its policy rates twice this year, lifting investors’ spirits. Nevertheless, the market is looking for more signals with the US Consumer Price Index (CPI) inflation data due later on the day.
In light of this, a new X post from Elon Musk outlines key steps that could help end US inflationary pressure. Moreover, his post on social media also suggests that the target can take place with the help of the newly formed D.O.G.E as Donald Trump has recently formed the department with Muask and Vivek Ramaswamy leading the charge.
At the same time, the Elon Musk company chief noted that the “government overspending” is the key cause of inflationary pressures in the country. Also, he stated that in case the “government waste is stopped, there will be no inflation”, adding to market speculations.
This means, specifically, at least in theory, that the Department of Government Efficiency was created to spend less on the US Federal Departments and help them work better. That said, it seems the department is now turning its attention to routing the US inflation by slashing government “overspending.”
Cut Fed Gov Spending To Zero The Musk Way
The new comment follows a recent remark from Elon Musk saying that the aim of D.O.G.E. is to reduce the Federal Government’s IT spending on ‘legacy systems’. Furthermore, he also has recently voiced concerns about how the US federal government’s computer systems and software are outdated. “Those systems are so bad that they literally can’t even tell if payments are fraudulent or not so they don’t pass basic audits,” he said.
Musk on the one hand said the government doesn’t know where tax dollars are going, and that he thinks that’s crazy. He even volunteered to become a Volunteer IT Consultant for the new administration, to fix the IT infrastructure so that the government would be much more efficient.
In other news, these statements have drawn the attention of investors, specifically after Donald Trump’s victory has led market lovers to good wishes. Musk’s support for Donald Trump in the previous election has also been an issue that has not gone unnoticed by the traders.
However, the Tesla CEO’s recent statements also led to a spike in Dogecoin prices. The department’s short form is also reminiscent of the Dogecoin ticker, and the market interest is apart given Musk’s past support for the top dog-themed meme coin. Furthermore, he also called himself “Doge Father” recently along with several indecipherable posts about DOGE that drew the attention of investors.
