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

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.

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.

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)

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)

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.

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.

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.

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.

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