Elon Musk Leaves DOGE, but Will Keep Advising Trump

Summary

WSJ What’s News Episode: Elon Musk Leaves DOGE, but Will Keep Advising Trump Release Date: May 30, 2025 Host: Pierre Bienname

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Introduction

In this episode of WSJ What’s News, host Pierre Bienname delves into significant developments shaping the economic and political landscape. The discussion centers around Elon Musk's departure from DOGE, his ongoing advisory role to former President Trump, consumer sentiment amid tariff uncertainties, Supreme Court rulings on immigration, the resurgence of student loan repayments, and the emergence of North Korean cyber scams targeting American remote workers.

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Elon Musk's Departure from DOGE and Continued Advisory Role to Trump

Farewell from Elon Musk: The episode opens with a press conference where former President Trump bids farewell to Elon Musk, highlighting Musk's contributions. Musk responds:

"It's about a man named Elon, and he's one of the greatest business leaders and innovators the world has ever produced. He stepped forward to put his very great talents into the service of our nation and we appreciate it."
(00:39)

Despite stepping back, Musk assures his continued involvement:

"Many of the Doge people, Elon, are staying behind, too. So they're not leaving, and Elon's really not leaving. He's going to be back and forth, I think. I have a feeling it's his baby, and I think he's going to be doing a lot of things."
(05:52)

Impact on DOGE: The episode discusses Musk's tenure at DOGE, noting mixed performance claims and future leadership uncertainties. Tim Higgins from the Tech News Briefing podcast comments:

"The Journal has reported that Steve Davis, a long time lieutenant in the Elon Musk world, is also stepping back. So the question becomes who is the leader? Who is the kind of the power behind the scenes?"
(06:43)

Higgins further explains the challenges DOGE faces in maintaining momentum without Musk's direct leadership.

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Consumer Sentiment Amid Tariff Uncertainties

Current Sentiment: American households remain pessimistic about the economy, with the University of Michigan's consumer sentiment index holding steady at 52.2, one of the lowest since 1952. US Economy Reporter Chao Deng provides insights:

"Tariffs are in the headlines almost every day and it's really worrying consumers. It's making it very difficult to forecast prices."
(01:48)

Impact of Tariff News: Deng explains the fluctuating news cycle around tariffs, including the temporary deal with China and mixed signals from the Trump administration's tariff policies:

"People expect prices to surge 6.6% over the next year, and that is one of the highest inflation expectations in decades."
(02:12)

Despite some positive developments, ongoing uncertainties keep consumer sentiment low.

Future Projections: Analysts anticipate continued low sentiment due to unresolved tariff issues and court rulings that may exacerbate consumer worries. Deng notes:

"Most economists think that consumer sentiment will probably drift around pretty low levels for the time being."
(03:41)

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Inflation and Economic Indicators

Inflation Trends: The Personal Consumption Expenditures (PCE) price index saw a modest increase of 0.1% in April, bringing the 12-month rise to 2.1%, nearing the Federal Reserve's target. Core inflation also eased to 2.5% from 2.7% in March.

Consumer Spending and Trade Deficit: Consumer spending grew by 0.2% in April, while personal income rose by 0.8%. Notably, the trade deficit for goods shrank by 20%, marking the largest monthly drop on record as tariffs impacted imports.

Stock Market Response: Stock indexes were largely flat, with the S&P 500 recording its best monthly performance since November 2023. However, renewed friction with China kept markets modestly subdued:

"The S&P 500 was flat for the day, the Dow up 0.1% and the Nasdaq down 0.3%."
(04:02)

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Supreme Court Rulings on Immigration Protections

Policy Reversal: The Supreme Court upheld the Trump administration's authority to revoke temporary protections for approximately 500,000 migrants from Cuba, Haiti, Nicaragua, and Venezuela. This decision nullifies previous Biden-era safeguards, though legal challenges continue.

Economic Implications: Economist Justin Lehart discusses the impact of resumed student loan repayments:

"Every penny that you have to pay to pay down your debt is a penny that you're not spending on something else. So you know that will weigh on the economy."
(08:00)

Lehart estimates that the reinstated loan payments could reduce GDP by about 0.1 percentage points, adding to existing economic headwinds from tariffs and reduced government spending.

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North Korean Cyber Scams Targeting American Remote Workers

Modus Operandi: North Korean operatives exploit American remote work opportunities by establishing laptop farms, generating substantial illicit revenue despite international sanctions. Bob McMillan from the Tech News Briefing podcast outlines their three-pronged strategy:

1. Financial Exploitation:

   "There are three things they want, first and foremost, they want money... they need cash for their weapons program."
   (11:08)

2. Data Theft and Extortion:

   "They'll exfiltrate data... and then they will threaten to dump it once you fire them, and so they'll extort you."
   (11:08)

3. Espionage:

   "The FBI suspects that they are also conducting espionage."
   (11:08)

Impact and Response: These activities not only provide funds for North Korea's regime but also pose significant security threats to American corporations, particularly in sensitive sectors like aerospace.

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Conclusion

The episode of WSJ What’s News provides a comprehensive overview of pivotal issues affecting the US economy and political sphere. From Elon Musk's evolving role in political advisory to consumer anxieties driven by tariff uncertainties, and from Supreme Court decisions impacting immigration to the lurking threat of North Korean cyber activities, the discussion underscores a period of significant transition and uncertainty. As these developments unfold, their implications for businesses, consumers, and national security continue to shape the discourse.

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Notable Contributors:

• Pierre Bienname: Host and reporter for The Wall Street Journal
• Chao Deng: US Economy Reporter
• Tim Higgins: WSJ Columnist, Tech News Briefing Podcast
• Justin Lehart: Economics Reporter
• Bob McMillan: Computer Security Expert, Tech News Briefing Podcast

Production Credits: Produced by Anthony Banci, Supervising Producer Michael Kosmides, Theme Music by Michael Lavalle, Development Producer Aisha Al Muslim, Deputy Editors Scott Salloway and Chris Sinceley, and Head of News Audio Falana Patterson.

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*For more in-depth analysis and updates, listeners are encouraged to tune into subsequent episodes and special segments of WSJ What’s News.

Transcript

[Elon Musk]

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[Pierre Bienname]

President Trump says farewell to Elon Musk in a news conference full of praise today.

[Elon Musk]

It's about a man named Elon, and he's one of the greatest business leaders and innovators the world has ever produced. He stepped forward to put his very great talents into the service of our nation and we appreciate it.

[Pierre Bienname]

Plus, American consumers are still down on the economy after a month of whipsawing tariff news and the Supreme Court delivers a win for President Trump's immigration agenda as thousands of non citizens lose their legal protections. It's Friday, May 30th. I'm Pierre Bienname for the Wall Street Journal, filling in for Alex Osoloh. This is the PM edition of what's News, the top headlines and business stories that move the world today. American households still felt gloomy about the economy in May. The final reading for The University of Michigan's closely watched index of consumer Sentime was 52.2, unchanged from the previous month. It's one of the lowest ever recorded in data going back to 1952. US economy reporter Chaodeng joins me now with more. Chao why are Americans down on the economy?

[Chao Deng]

Well, economists say this is really still about the tariff news cycle. Tariffs are in the headlines almost every day and it's really worrying consumers. It's making it very difficult to forecast prices. In this survey, we saw that people expect prices to surge 6.6% over the next year, and that is one of the highest inflation expectations in decades.

[Pierre Bienname]

How have the events of the month shaped the sentiment?

[Chao Deng]

In the first half of the survey, which started in late April, people were still very much worried about the tariffs imposed by Trump, including the extremely high duties on China. And then about halfway through the survey, the White House struck a deal with China to lower the duties there. And so that was a pretty big positive surprise. So you would have seen that reflected in the second half. There was also like mixed good and bad news later on. Walmart said that it would raise prices in response to tariffs. Trump threatened 50% duties on the EU and later said he would delay them. So that made for a bit of a mixed news cycle. The stock market was rallying. That may have cushioned the mood of some investors, but all in, out. The sentiment remained unchanged from the previous month. Again because there is just so much worry about tariffs and the uncertainty ahead.

[Pierre Bienname]

What are analysts saying about future consumer sentiment, how it will evolve even just.

[Chao Deng]

This week, right, we had the news from the International Trade Court invalidating many of Trump's tariffs and then another appeals court decision that put that ruling on hold. And this news wasn't part of the survey. But this is the kind of headline that is going to continue to worry consumers in the coming months. And so most economists think that consumer sentiment will probably drift around pretty low levels for the time being.

[Pierre Bienname]

Going back to inflation, how could expectations of inflation affect consumer sentiment in the future?

[Chao Deng]

It's at least relationship, but depending on how people think prices will move, they may save and buy less or they may try to get ahead and stock up for the future.

[Pierre Bienname]

That was US Economy reporter Ciao Deng Xiao. Thanks for joining me.

[Chao Deng]

Thank you.

[Pierre Bienname]

Meanwhile, the Fed's preferred gauge of consumer prices ticked up just slightly in April. The Commerce Department said today that the Personal Consumption Expenditures price index rose 0.1% last month. That brought the index's 12 month increase to 2.1% through April, the down from March's figure and closer to the Fed's target of 2%. The core version of the index, which cuts out volatile food and energy costs, also increased by 0.1% last month. Twelve month core inflation fell to 2.5% in April from 2.7% in March. The Commerce Department's report also showed that consumer spending grew by 0.2% in April compared with March, while personal income increased by 0.8%. And the US's trade deficit for goods shrank substantially in April as new tariffs weighed on imports. The Commerce Department said goods imports fell 20% to over $276 billion, while exports rose 3.4% to $188.5 billion. It was the biggest one month drop in goods imports on record. The goods trade deficit shot higher in the months after President Trump's reelection and as companies raced to get supplies onshore before the tariffs they expected the White House to enact. Stock indexes were mostly lower Friday before closing. Little changed after renewed signs of friction with China. The S&P 500 was flat for the day, the Dow up 0.1% and the Nasdaq down 0.3%. The S&P 500 recorded its best monthly performance since November 2023. President Trump said farewell to Elon Musk today, closing out one of the most turbulent periods in modern government with an Oval Office news conference in which both men said their relationship would continue.

[Elon Musk]

Many of the Doge people, Elon, are staying behind, too. So they're not leaving, and Elon's really not leaving. He's going to be back and forth, I think. I have a feeling it's his baby, and I think he's going to be doing a lot of things. But Elon's service to America has been without comparison in modern history.

[Pierre Bienname]

Musk's actions during his tenure at the White House at times eclipsed Trump's dominating headlines as he presided over one of the most ambitious, divisive, and ultimately underperforming attempts to remake the federal bureaucracy. Doge said it has saved the government $175 billion since Trump's inauguration on January 20. But analysts across the political spectrum have called those claims inflated, and it is far short of the $1 trillion or more Musk promised. So who's going to lead Doge after Musk? WSJ columnist Tim Higgins spoke to our Tech News Briefing podcast.

[Tim Higgins]

We know that the engine of that effort, Elon Musk, is taking a step back. The Journal has reported that Steve Davis, a long time lieutenant in the Elon Musk world, is also stepping back. So the question becomes who is the leader? Who is the kind of the power behind the scenes? And it's something we just don't really have a good grasp on at this point. But like Buddhism, as Musk likes to say, the Doge effort will continue. And one of the things that's really of concern is that while Doge is highlighting areas that could see savings, it seems as if Congress will really have to cement that, the president hinting that the effort will be made there. But so far we haven't really seen that. And the budget bill that is moving away through Congress is projected to increase the US Deficit, so kind of going the opposite direction.

[Pierre Bienname]

And you can hear more about Doge's record so far and the challenges Musk will face as he refocuses on his own companies on our Tech News Briefing podcast on Monday. Coming up, the Supreme Court rules that the White House can move ahead in pulling protections for half a million migrants living in the U.S. that's after the break.

[Chao Deng]

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[Pierre Bienname]

The Supreme Court will allow the Trump administration to revoke temporary Biden era protections that allow about 500,000 migrants from Cuba, Haiti, Nicaragua and Venezuela to live and work in the U.S. the unsigned order today stops, for now a lower court injunction that prevented the government from removing those protections. It is the second time in recent weeks the Supreme Court has allowed the Trump administration to end temporary immigration protections. While those moves are being challenged in court. Earlier this month, the high court allowed the administration to proceed with ending separate temporary protections for for a group of Venezuelans living in the U.S. millions of Americans had their student loan payments put on pause during the pandemic. Now they're back on the hook again. That will strain personal finances, since every month money that they presumably used to spend elsewhere is going to pay off debt instead. And as economics reporter Justin Lehart told our your Money Briefing podcast, it will also be a challenge for the US Economy.

[Justin Lehart]

Every penny that you have to pay to pay down your debt is a penny that you're not spending on something else. So you know that will weigh on the economy. Morgan Stanley economists estimate that it will knock about one tenth of a percentage point out of gdp. It could be more than that. The bigger concern right there is that it's not a huge drag on the economy, but it is a drag on the economy. And this is an economy that is facing, you know, other issues, primarily tariffs, but also reductions in government spending, immigration restrictions, and so on and so forth. So it just adds to the things that are pushing against the economy and could make for slower growth this year and next.

[Pierre Bienname]

You can hear more on today's episode of youf Money Briefing. And on Sunday, we'll have a special bonus episode of youf Money Briefing. In Keeping It Money, we'll share personal stories that offer even more insight on your money habits and goals and take a deep dive into ways that you can make some extra cash. A scam that the FBI says involves thousands of North Korean workers has brought hundreds of millions of dollars into the country every year. International sanctions have frozen the flow of funds there, so North Korea has gotten creative in its quest for cash. One way they've gone about it is to use some of America's remote work opportunities to start laptop farms in states across the U.S. bob McMillan covers computer security, hackers, and privacy for the Wall Street Journal. He joined our Tech News Briefing podcast to explain why North Korea is interested in these workers.

[Bob McMillan]

There are three things they want, first and foremost, they want money. Their regime is sanctioned. They have a hard time trading with anyone in the west, and they need cash. They need cash for their weapons program, for example. And the FBI estimates that they are making hundreds of millions of dollars a year just from paychecks from companies hiring these North Koreans, who by all accounts, some are terrible, some are not bad, some last month or even years at these companies. And so they found sort of a hack of our remote work situation right now. So that's the first thing they want is money. The second thing, they want more money. So quite often they'll exfiltrate data. They'll steal your corporate secrets, your source code, customer information, and then they will threaten to dump it once you fire them, and so they'll extort you. So that's number two. And then the third case is murky, but the FBI suspects that they are also conducting espionage. So they've hit aerospace companies. There are certain types of companies that might have secrets that the North Korean regime would be interested in. So those are the three things they're doing.

[Pierre Bienname]

For more on this story, listen to today's episode of Tech News Briefing. And that's what's news for this week. Tomorrow you can look out for our weekly markets wrap up, what's News in Markets? Then on Sunday, we'll be looking at the military industrial battle between the US And China. That's in what's News Sunday? And we'll be back with our regular show on Monday morning. Today's show was produced by Anthony Banci with supervising producer Michael Kosmides. Michael Lavalle wrote our theme music. Aisha Al Muslim is our development producer. Scott Salloway and Chris Sinceley are our deputy editors. And Falana Patterson is the Wall Street Journal's head of news audio. I'm Pierre Bienname. Thanks for listening.