Elon Musk has made a statement about lowering mortgage and loan interest rates in the US thanks to D.O.G.E, amidst ongoing disputes with the Federal Reserve and the Treasury.
D.O.G.E vs. US Treasury
On February 11, a federal judge blocked D.O.G.E from accessing a key Treasury Department payment system. This came after a lawsuit filed by attorneys general from 19 Democratic states who argued that Elon's operation had no legal authority to access government financial records. Critics claim Musk's team lacks oversight and could disrupt payments or expose Americans' financial data.
Treasury yields surge, Fed delays rate cuts
The 10-year Treasury yield rose following a hot inflation report. Futures markets now predict that a Fed rate cut won't occur before September, if at all this year. Fed Chair Jerome Powell stated that inflation is improving but not enough to lower rates.
Inflation and future outlook
Inflation remains high. The consumer price index increased by 0.5% in January, pushing the annual inflation rate to 3.0%. Economists had expected lower readings. Citigroup predicts the personal consumption expenditures index will drop to 2.6% for January, slightly down from December’s 2.8%.
Elon Musk's claims and market events continue to spark debate. It remains to be seen how the situation unfolds in the economy and whether D.O.G.E will intervene in US financial policy.
