What Can the Department of Government Efficiency Do?

### Trump Appoints Musk and Ramaswamy to Lead New Government Efficiency Department

President-elect Donald Trump has made an unconventional decision by appointing Elon Musk and Vivek Ramaswamy to head the newly formed Department of Government Efficiency (DOGE). While Trump's plans for this entity remain vague, he aims to reduce regulations, cut unnecessary spending, and restructure federal agencies with advice from external experts. Traditionally, outsiders in government roles face restrictions due to conflict-of-interest laws, which prohibit employees from partaking in matters where they have financial interests. However, these laws don't extend to outside contractors, which might be relevant for Musk.

Despite this, acting in a manner similar to a government employee, such as managing staff, may still lead to legal issues. There is a possibility of Trump issuing a waiver for Musk, allowing him to participate without divestments, a departure from standard practice. DOGE's influence doesn't have to be direct to be effective, as presidential advisors have no legal constraints against offering counsel. For Musk to avoid legal conflicts, his recommendations would need implementation by Congress or authoritative figures.

The situation is not unprecedented, as former President Ronald Reagan also consulted external advice for governmental cost reduction. Musk, already influential in Trump's circle, has taken part in job interviews and national security meetings. Official advisory panels are generally subject to transparency rules, but it remains unclear if DOGE will adhere to these formalities. While external advisors are not bound by conflict-of-interest laws, they must navigate the pressures of perceived conflicts, evidenced by Carl Icahn's resignation following concerns over regulatory influence.

### Federal Reserve's Position and Impact on Markets

Federal Reserve Chair Jay Powell indicated a shift in monetary policy, stating the central bank is not rushing to reduce interest rates. This statement, along with investor apprehensions about Trump's protectionist policies, affected the stock market negatively, especially impacting the technology and pharmaceutical sectors.

### Cabinet Nominations and Industry Impact

Trump has begun forming his cabinet, naming Marco Rubio as Secretary of State, Pete Hegseth as Defense Secretary, Kristi Noem for Homeland Security, and Matt Gaetz as Attorney General. The appointment of Robert F. Kennedy Jr., who questions vaccine safety, as Secretary of Health and Human Services, has unsettled the pharmaceutical sector, leading to a drop in vaccine producers' stock prices.

### Corporate Movements and Antitrust Perspectives

John Malone has restructured Liberty Media, transferring Liberty Broadband to Charter Communications while retaining Formula 1 and planning a spin-off of Liberty Live. An ongoing shift in antitrust enforcement under the Biden administration is under scrutiny. Despite significant case victories blocking mergers and monopolies, there have been notable defeats as well. The administration aims to instill a long-lasting cultural change towards antitrust, though the entry of Trump’s administration could alter this trajectory, threatening regulatory bodies' funding and authority.

Antitrust discussions have entered the public discourse, ultimately influencing future legal professionals and shaping judicial perspectives. Biden's legacy in this arena may hinge on outcomes from ongoing legal battles against major corporations. Meanwhile, Cabinet appointees hint at potential continuity in certain antitrust issues, even with prospective changes in leadership at key regulatory agencies.