Elon Musk on Wednesday evening confirmed his departure from the Trump administration, ending a controversial tenure as head of the Department of Government Efficiency (DOGE). In a brief social media statement, Musk said his term as a Special Government Employee had ended, thanking President Donald Trump for the opportunity to “reduce wasteful spending.” He added that the “@DOGE mission will only strengthen over time,” hinting at ongoing ambitions for government reform beyond his involvement.
Musk’s exit, confirmed by White House sources, follows public criticism of Trump’s signature tax bill, dubbed the “Big, Beautiful Bill.” The bill, which recently passed the House and is now in the Senate, was sharply rebuked by Musk during a CBS interview, where he claimed it undermined DOGE’s cost-cutting efforts.
His departure ends a polarizing chapter in Musk’s already turbulent public career. The DOGE initiative fell far short of its initial promise to slash trillions in federal spending. Lawsuits also challenged Musk’s authority over job and budget cuts across agencies, and his presence in Washington sparked backlash against his private companies, especially Tesla (NASDAQ:TSLA), which has faced global boycotts and vandalism. Notably, Tesla shares rose 2.7% in aftermarket trading following Musk’s announcement.
Musk’s exit came on the same day a U.S. federal court dealt a major blow to Trump’s trade strategy. The Court of International Trade ruled that Trump overstepped his authority by imposing sweeping tariffs on imports from U.S. trading partners. The court emphasized that the U.S. Constitution grants Congress, not the executive branch, the sole power to regulate commerce with foreign nations. It concluded that the International Emergency Economic Powers Act (IEEPA), which Trump had cited to justify the tariffs, does not provide the president with unlimited tariff authority. The ruling came in response to a lawsuit filed by the Liberty Justice Center on behalf of small U.S. importers and effectively blocks the broad “Liberation Day” tariffs announced in April. The White House has said it plans to appeal.
Markets rallied following the court’s decision. Global risk appetite improved, buoying equities and weighing on traditional safe-haven assets like gold. Oil prices also rose, helped by expectations that OPEC+ may hike production in July and growing concerns over potential new sanctions on Russian crude flows. In parallel, gold prices slid for a fourth straight session as investors favored the U.S. dollar, which surged past the 100 level on the DXY index.
Minutes from the Federal Reserve’s May meeting released Wednesday showed policymakers favoring a wait-and-see approach on interest rates. Officials expressed the need to hold steady until the economic impact of fiscal and trade developments becomes clearer. This supported the dollar further and added pressure on non-yielding assets like gold.
Meanwhile, tensions continued to simmer on the geopolitical front. Israel struck Houthi positions at Yemen’s Sanaa airport for the second time this month, following recent missile attacks. Russia proposed a new round of peace talks with Ukraine in Istanbul on June 2, amid mounting pressure from President Trump to end the war. Reports indicate Russian President Vladimir Putin seeks a written Western pledge to limit NATO expansion eastward.
Looking ahead, markets are focused on key upcoming U.S. economic data. Thursday will see the release of the preliminary Q1 GDP report, weekly initial jobless claims, and pending home sales. However, all eyes are on Friday’s core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation gauge, which could significantly shape monetary policy expectations.
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