Job purge by Elon Musk-led DOGE becoming increasing risk to US economy? Here's what an Apollo economist has to say

An Apollo economist has suggested that the Department of Government Efficiency is not a great factor for the overall well-being of the US economy or even the markets as their recent job cut spree in the federal administration has the potential to disrupt the economy in the coming days.

US stock market at risk from DOGE?

According to a Forbes report, the markets are currently in a state of major risk, and even though Trump has always put his pride in stock markets being one of his biggest strengths and a barometer for his success, that too may not cut it this time as the job purges may ruin that too. As of now, the US stock market is currently in a strong position, but it has deflected a little amid all the administrative controversies, as well as the recent advent of AI, that shook the US-based AI stocks as well as the S&P 500.

The Apollo economist Torten Slok pointed out that the downside risks to the economy and markets are ever-increasing in the past few days, and further job purges could give rise to uncertainty and panic, that could lead its way straight to the markets. The primary concern right now is the contract cuts being done by DOGE staffers for various job roles in the federal administration.

FAQs:

Who is the current head of the Department of Government Efficiency?
The current head of the Department of Government Efficiency is billionaire CEO Elon Musk.

Is DOGE conducting job cuts?
Yes, The Department of Government Efficiency is currently conducting thousands of job cuts within the federal administration.