Vivek Ramaswamy, co-leader of President-elect Donald Trump‘s Department of Government Efficiency, is expected to step down from his position, potentially complicating the administration’s ambitious federal spending reduction goals.
What Happened: Ramaswamy, 39, plans to pursue a campaign for Ohio governor by month’s end, reported CBS News citing multiple sources. The departure comes as Ramaswamy’s DOGE co-leader, Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk, recently scaled back expectations for budget cuts from $2 trillion to a more modest $1 trillion target.
During a recent interview on X, Musk characterized even this reduced goal as an “epic outcome” if achieved.
The leadership shake-up has caught Wall Street’s attention, though analysts remain optimistic about its impact on the defense sector.
Truist Securities analyst Michael Ciarmoli initiated coverage of Lockheed Martin Corp. (NYSE:LMT) and Northrop Grumman Corp. (NYSE:NOC) with Buy ratings, describing DOGE-related concerns as “overblown” given the advisory nature of the department.
Ramaswamy did not immediately respond to Benzinga's request for comment.
See Also: TikTok Back Online In US After Trump Vows Monday Executive Order
Why It Matters: According to the report, internal dynamics are growing friction between Ramaswamy and incoming DOGE staff, with associates of Musk privately expressing frustration over Ramaswamy’s limited participation in key initiatives.
The department, while not a full federal agency, is tasked with advising on bureaucracy reduction and federal spending cuts, with a mandate to complete its work by July 2026.
Market observers note that previous attempts at significant federal spending reductions have faced congressional resistance, with even modest proposals struggling to gain traction.
Read Next:
- Bernie Sanders Slams Elon Musk’s Vision Of ‘Super High IQ’ Aristocracy Who Are ‘Going To Be Running The World For Us’
Image Via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
