DOGE & The Deficit

Federal spending needs to be cut to pre-pandemic levels relative to GDP, in our opinion, and we’re confident that Trump 2.0 can do so. But DOGE may not be the way that is achieved. The new department’s bold early initiatives seem misaligned with the administration’s goals. ... However: A look at how Trump 2.0 may be able to ease pressure on the fiscal deficit by increasing domestic production and overhauling global trade to remedy imbalances. We’re optimistic that these approaches will work, which supports both our Roaring 2020s economic outlook and Stay Home investment strategy.