President Trump’s newly created Department of Government Efficiency (DOGE) is focused on reducing federal spending and improving operations. With the U.S. DOGE Service now under its control, the department aims to modernize government functions and cut costs. Remarkably, these efforts are already showing significant results just one week after Donald Trump
More details below.
According to The Kobeissi Letter, DOGE has reportedly saved the U.S. government $1 billion per day since the new administration took office. If this trend continues, it could reduce the national deficit by $365 billion by January 2026—equivalent to a 20% cut in the FY2024 deficit of $1.8 trillion.
For context, the U.S. spent around $850 billion on defense in 2024, meaning DOGE’s savings could cover almost 43% of that budget. Additionally, with U.S. interest payments on debt reaching $882 billion last year, reducing the deficit by $365 billion could lower interest costs by over $12 billion annually.
DOGE achieved these financial savings with three major steps: freezing non-essential hires, cutting DEI programs, and reducing improper payments overseas. By halting unnecessary hiring, trimming down bureaucratic waste, and ensuring taxpayer money isn’t lost abroad, DOGE is setting a new standard for fiscal discipline.
If these changes continue, they could save around $365 billion a year, which could be redirected to essential areas like infrastructure, healthcare, or national security.
The Kobeissi Letter points out that to reduce the deficit by 50%, DOGE would need to boost daily savings to $2.5 billion. If deficit spending decreases, bond yields could also drop, reducing interest costs and starting a positive economic cycle.
With concerns over rising inflation and the deficit, the 10-year Treasury yield has increased by 100 basis points since rate cuts began. If DOGE’s efforts lead to lower government borrowing, yields could stabilize, saving U.S. consumers trillions in interest over the next decade.
Can DOGE Completely Eliminate the Deficit?
Fully eliminating the FY2024 deficit would require cutting $5 billion per day—five times the current savings rate. The last time the U.S. achieved a budget surplus was in 1998 under President Bill Clinton. If successful, Trump and elon musk
While these results are encouraging, it’s still uncertain if DOGE can truly transform the U.S. economy. Nevertheless, the latest developments have caught the attention of the market, with DOGE—an underdog cryptocurrency—making waves in the U.S. economy.
If the current trend holds, the U.S. government may soon be able to look at its budget in a whole new light, with savings that benefit the country as a whole.
Bitcoin is about to close the monthly trade on a bearish note, which may hinder…
Shiba Inu(SHIB) has been making headlines, especially with its recent development. It has started flashing…
Solana experienced an extraordinary surge, leaving many wishing they had invested sooner. Now, four small…
The crypto markets have been facing a massive pullback over the past couple of days,…
The last few days of March have brought a sharp decline to the crypto market.…
Bitcoin (BTC) is facing increasing pressure as key support levels are breaking, raising concerns about…