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The Markets
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The Markets
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Finance

Elon Musk walks back $2T cost savings expectation for DOGE

Tech billionaire Elon Musk has revealed that he may not be able to find $2 trillion in savings for President-elect Donald Trump, walking back an earlier goal he set as co-head of the new advisory body, the Department of Government Efficiency (DOGE).

Musk told political strategist Mark Penn on Wednesday the $2 trillion figure was a “best case scenario” and suggested that a more realistic expectation would be to achieve approximately $1 trillion in cuts.

He stated that while aiming for $2 trillion is still on the table, he believes there is only a "reasonable chance" of realizing half that amount.

Musk noted that substantial savings would likely require cuts to mandatory programs such as Medicaid, which could lead to hardships for many individuals reliant on these services.

He remains optimistic about finding opportunities to save costs within government spending, referring to a “target-rich environment for saving money” without specifying which areas could be prioritized for cuts.

“If we can drop the budget deficit from $2 trillion to $1 trillion and free up the economy to have additional growth, such that the output of goods and services keeps pace with the increase in the money supply, then there will be no inflation.

"So that, I think, would be an epic outcome,” he said.

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