Elon Musk says D.O.G.E will cut interest rates for all Americans

CEO Elon Musk has just made a statement that has caused a stir on the X social media: Americans are about to pay less for all loans - from mortgages to business loans - thanks to the (Department of Government Efficiency) D.O.G.E. According to Musk, when D.O.G.E is effectively implemented, the long-term treasury bond yields will decrease, thereby helping to lower interest rates for borrowers. However, alongside promising economic benefits, D.O.G.E is facing a large-scale legal and political battle with the U.S. Department of the Treasury, federal courts, and state attorneys general. D.O.G.E - New Hope for Americans Elon Musk believes that cutting government spending will lead to a reduction in interest rates for the people. “Eliminating the budget deficit and interest rates will decrease for Americans,” Musk asserted. According to him, as the treasury bond yield decreases, loans such as mortgages, business loans, and even credit cards will have lower interest rates, creating favorable conditions for the economy. Part of Musk's strategy is based on D.O.G.E - an 'efficient government team' that is not elected - to control and reduce public spending. Previously, former President Trump signed an executive order requiring federal agencies to coordinate with D.O.G.E to 'cut government spending', leading to budget freezes and cuts to current programs. However, this order has faced many legal challenges related to the constitutionality of D.O.G.E's activities. Legal Battle and Data Access Rights Dispute In addition to the goals of improving spending efficiency, D.O.G.E is currently embroiled in a power struggle with the US Department of the Treasury. On February 11, a federal judge ordered D.O.G.E to be blocked from accessing a key payment system of the Treasury Department, after receiving a lawsuit from the Attorneys General of 19 Democratic-leaning states. They argued that D.O.G.E does not have the legal authority to access government financial data, fearing that it could infringe on people's privacy rights and disrupt important payment transactions. According to the officials of the Ministry of Finance, the access rights of D.O.G.E are in 'read-only' mode, meaning there is no intervention, alteration, or blocking of payments. At the same time, Tom Krause - a collaborator of Elon Musk - is also reviewing the payment system of the Ministry of Finance with experienced experts. However, despite these assertions, lawsuits and political debates continue to raise concerns about data security and the legality of this operation. Inflation Situation and Rising Bond Interest Rates In the context of D.O.G.E being promoted as a tool to lower interest rates, the US economy is facing many challenges. The 10-year Treasury bond yield has risen 11 basis points to 4.651% after a hotter-than-expected inflation report. Similarly, the 2-year Treasury bond yield has also increased by 8 basis points, reaching 4.37%. According to the report of the General Statistics Office, the Consumer Price Index (CPI) rose by 0.5% in January, pushing the 12-month inflation rate to 3.0% - higher than economists' expectations. Core inflation, which excludes food and energy prices, also increased by 0.4% for the month and reached 3.3% for the year. These figures have dashed hopes of an early interest rate cut by the Federal Reserve (Fed) this year. Futures markets currently indicate the earliest possibility of a rate cut not before September, barring any policy changes. Fed Chair Jerome Powell has affirmed to the House Financial Services Committee that although inflation shows signs of improvement, it is still not enough to allow monetary policy easing. Economic experts warn that price pressures are still "under the surface" of the economy. Prospects and Things to Watch One of the major factors contributing to the increase in bond yields is government deficit spending. Musk and his team believe that cutting this spending will naturally lower yields, benefiting Americans directly. However, amid legal and political debates over data access rights, questions about the true effectiveness of D.O.G.E still remain unanswered. Meanwhile, Wall Street is eyeing the personal consumption expenditure index (PCE) - Fed's preferred inflation gauge. Citigroup forecasts that the core PCE index could drop to 2.6% in January, lower than December's 2.8%. However, if this figure falls short of expectations, the Fed may continue to delay interest rate cuts, prolonging the tight monetary policy stance. Conclusion Alongside promises of lowering interest rates and creating favorable conditions for borrowing, Elon Musk's D.O.G.E. is becoming the center of a tense legal and political battle. While Americans may benefit from a more efficient public spending system, the question of the legality and safety of accessing financial data remains a thorny issue. Only time will tell whether these reforms truly benefit the economy or are just a risky political strategy. DYOR! (Write&Earn $DOGE {spot})DOGEUSDT(