President-elect Donald Trump appointed billionaire entrepreneur Elon Musk and Republican party leader Vivek Ramaswamy to run the Department of Government Efficiency (DOGE). The new department’s goal is to streamline federal operations and cut wasteful government spending. However, leading investment bank JP Morgan recently published a report on DOGE, casting doubt on its effectiveness.
JP Morgan evaluated the prospects of DOGE, saying the new department will have a difficult time controlling government spending. While DOGE’s job is to advocate less red tape and government interference, the reality will be different. On paper, the idea seems wonderful, but practically, the department will find it hard to navigate.
Also Read: XRP Forecasted to Breach All-Time High of $3.40: Here’s When
JP Morgan: Congress Controls Government Spending, Not DOGE
JP Morgan wrote in its paper that Congress controls government spending and DOGE sits outside of Congress. DOGE can only make suggestions but the overall power to control government spending is in the hands of Congress. The department might not do the job it is intended to do as it officially has no power.
Also Read: Crypto Chaos: PNUT Token Owner Sparks Lawsuit Against the Community
“We think the Elon Musk-led department, which aims to cut wasteful government spending, will have a difficult time doing so,” wrote JP Morgan. “On government efficiency, President-elect Trump is expected to pursue an agenda that advocates for less red tape. Part of this includes a new Department of Government Efficiency (DOGE),” JPMorgan said, adding:
“The bottom line is that Congress controls government spending, and DOGE sits outside of Congress,” wrote JP Morgan. “The department can make all the suggestions it wants, but ultimately it’s the typical 60-vote majority in Congress that makes legislative changes.”
Also Read: Trump’s 25% Tariffs on Canada, Mexico, and China: What it Means for Global Stocks
In conclusion, the global investment bank JP Morgan is doubtful that Elon Musk’s DOGE will be of use. The new department can only give suggestions but the ultimate power is in the hands of Congress to control spending.
