JPMorgan: Trump's Efficiency Department DOGE May Become Empty Talk, Reforms Require Congressional Support to Overcome Bipartisan Differences

Earlier, Trump announced the establishment of a new government efficiency department (DOGE) during his second term as president, led by tech mogul Musk and entrepreneur Ramaswamy (Vivek Ramaswamy), with the aim of reducing government waste and streamlining administrative agencies.

However, a recent JPMorgan analysis report pointed out that although DOGE advocates "reducing waste", the implementation of this "spending reduction" plan may face significant challenges due to the budget being controlled by the "congress".

JPMorgan Chase looks at DOGE, reform plan may face congressional challenges

The report states that DOGE has a very clear goal, which is to review government wasteful spending and propose reform through a professional team led by Musk and Ramaswamy. However, these proposals themselves are 'not binding' and require 'congress' approval to be truly implemented.

The report points out that the positioning of DOGE is similar to a think tank, responsible for proposing ideas to reduce expenses. However, the power to implement major budget or policy changes is held by the US Congress, and reform proposals must be supported by at least 'more than 60 votes' in the Senate to pass.

DOGE needs to overcome the partisan divide in the United States, either through structural reforms or minor adjustments.

And in the situation of the split between the two parties in the United States, any proposal involving large-scale reform needs to overcome partisan divisions. This means that even if DOGE has a very good reform proposal, it may be difficult to implement due to political reality. This makes the efficiency improvement plan of DOGE more inclined to minor adjustments rather than large-scale structural reforms.

The report indicates that the Trump administration may prioritize policies with 'less political resistance' such as 'infrastructure, energy policy, tax reform', while 'structural reforms' like DOGE may take longer and may even be marginalized. Ultimately, the success of DOGE depends on 'whether it can persuade Congress to pass legislation,' a process that can be quite challenging.

The future of DOGE is full of uncertainty

In summary, although DOGE's reduction plan is ambitious, whether the proposal can actually be implemented is still challenged by the US Congress and political reality, depending on the acceptance of the reform by Congress, and whether the Trump administration will prioritize relevant policies or "less political resistance" policies in the future.

However, JPMorgan also reminds investors to pay attention to the political and economic dynamics behind DOGE, as the success or failure of the 'reduction plan' may affect the future direction of US fiscal policy and consequently impact the global market.

(Trump nominates Musk and Ramaswamy to lead the 'Department of Government Efficiency DOGE' to reshape government structure)

This article Morgan Stanley: Trump's efficiency department DOGE is likely to be empty talk, reform requires congressional support, overcome bipartisanship first appeared in Chain News ABMedia.