Has DOGE Been Leashed? How the Stock Market is Reacting to Trump's Tariffs (with J.D. Durkin)

In a Truth Social post on Thursday, President Donald Trump declared that "the golden age of America has just begun." He touted his administration’s early successes and emphasized that his newly assembled cabinet is focused on cost-cutting measures and staffing decisions, with the Department of Government Efficiency — colloquially known as "DOGE" — playing a central role.According to Trump, his administration will take a "scalpel rather than the hatchet" approach to reducing government waste. He praised Elon Musk and DOGE for their efforts in streamlining operations, stating that his team would be conducting biweekly meetings to assess and refine their approach.However, the speed and aggressiveness of the administration’s restructuring efforts have not gone unnoticed. Over the past 48 hours, there has been a discernible shift — a brake pumping, if you will — on the administration’s initial velocity. Reports suggest that Attorney General Pam Bondi recently presented Trump with binders labeled Epstein files, only for him to realize that most of the information was already publicly available. The implication? There may be an effort to control the chaotic rollout of these reforms.Behind the scenes, Chief of Staff Suzy Wiles appears to be taking on a stabilizing role. She remains largely unquoted in the press, but her influence is evident. While no one can dictate Trump’s decisions, if there is anyone capable of channeling his impulses into a more structured path, it is likely Wiles.The Challenge of Government ReformPolling data presents mixed signals for the administration’s strategy. While government reform remains broadly popular, Elon Musk himself does not poll particularly well. Moreover, while fiscal responsibility is a winning message, mass firings are unpopular, especially when they disrupt essential services.Some of the layoffs initiated by DOGE have drawn minimal public sympathy, such as the widely ridiculed case of a Yosemite employee responsible for bathroom keys. But other cuts have raised alarm, like the reported downsizing at the National Weather Service. This agency is crucial not only for routine weather forecasts but also for emergency alerts, particularly with tornado and hurricane seasons approaching in the coming months.If the administration is now signaling a more measured approach, it may be an acknowledgment that they have tested the limits of public tolerance for aggressive government downsizing. Silicon Valley's ethos values rapid iteration, but that approach does not always translate well to governance. In the tech world, listing a feature that doesn't yet exist isn’t necessarily misleading if it eventually becomes reality. However, in government, making sweeping announcements without a clear plan can create the perception of recklessness rather than innovation.This shift in tone suggests that the administration is attempting to move away from the narrative that it is slashing government with reckless abandon. Instead, the messaging now emphasizes precision: cutting waste while retaining key personnel and essential services. Whether this recalibration is enough to change the public perception is a question for another day.One clear indication of this shift is a new push in Congress. Senate Republicans are urging legislative action to codify DOGE’s spending cuts, following a court ruling that limits the department’s unilateral authority. While some lawmakers have praised Musk’s efforts, others, including Senator Rand Paul, have cautioned that major spending cuts should be handled through Congress rather than executive fiat. Senator Lindsey Graham, a supporter of DOGE, has acknowledged its flaws and has encouraged a more structured approach through legislative rescission.The Coming Battle Over RescissionOne term that is about to become more prominent in political discourse is rescission. While it may sound similar to reconciliation, the two are entirely different budgetary mechanisms. Rescission allows the president to formally request that Congress cancel previously approved federal spending.Here’s how the process works:* The president submits a rescission proposal to Congress, specifying funds to be cut.* Congress has 45 days of continuous session to approve the request. Importantly, approval only requires a simple majority in both chambers, meaning it bypasses the 60-vote Senate filibuster.* If Congress approves, the specified funds are canceled, preventing the executive branch from spending them. If Congress rejects or ignores the proposal, the funds remain intact.The significance of this approach is that it moves beyond the constitutional gray area of unilateral executive spending cuts. Instead of DOGE simply slashing budgets at the departmental level, rescission would put the matter before Congress, potentially giving the cuts more permanence.According to reports, Musk was convinced to support this approach after Lindsey Graham pointed out that any cuts made solely at the department level could easily be reversed by a future Democratic administration. A congressional rescission, however, would be far more difficult to undo.While this approach is unlikely to balance the budget overnight, it represents a strategic shift. It acknowledges the reality that sweeping cuts cannot be imposed without some level of congressional buy-in. The debate now moves to Capitol Hill, where budget hawks may find it difficult to oppose targeted spending reductions, even as Democrats push back.The Trump administration is attempting to walk a fine line: maintaining its image as bold reformers while avoiding the perception of recklessness. The rescission package will likely be controversial, and its success will depend on whether Trump and his allies can frame it as a necessary step toward fiscal responsibility rather than an indiscriminate assault on government programs.As this battle unfolds, the administration’s challenge will be proving that it can not only take risks but also manage them effectively. Whether that message resonates with the public — and with Congress — will determine the next phase of Trump’s government efficiency crusade.Chapters00:00:00 - Intro00:02:03 - Trump’s DOGE Post00:08:25 - Codifying Rescission00:12:36 - Update intro00:13:43 - Al Green’s Censure00:17:25 - Hunter Biden’s Financial Struggles00:21:13 - More Tariff Twists00:24:47 - Interview with J.D. Durkin00:58:34 - Wrap-up This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.politicspoliticspolitics.com/subscribe