### Cathie Wood Supports Elon Musk's New Role in Government Cost-Cutting Initiative

Cathie Wood, CEO of ARK Invest, has expressed strong support for Elon Musk’s new role leading an audit committee focused on reducing federal government spending. Wood believes Musk will employ "sensible measures" to enhance efficiency across various government sectors.

Earlier this week, President-elect Donald Trump appointed Musk to head the newly created Department of Government Efficiency (DOGE). This initiative aims to enforce cost-cutting measures throughout the federal government. Interestingly, the acronym DOGE coincides with the popular cryptocurrency Dogecoin, which Musk has famously endorsed.

Wood is confident in Musk’s ability to revolutionize government operations, much like he has done in the technological and automotive industries. "I think he's going to bring a lot of efficiency to government," she said during an interview with CNBC. She emphasized Musk's adeptness in leveraging technology and proprietary data, particularly within fields like artificial intelligence.

Musk himself has been an advocate for greater government efficiency, proposing such a commission during a live X Spaces conversation with Trump in August. Citing the need to ensure that taxpayer money is judiciously spent, Musk echoed sentiments that resonate with his innovative approach in his various companies.

Wood highlighted Musk’s vast access to data through his companies—Tesla, SpaceX's Starlink, and X—as a significant advantage. "He has more proprietary data from all of these companies than I think any other CEO," Wood noted. This immense repository of data could offer invaluable insights and strategies for streamlining government functions.

Joining Musk in this endeavor is former Republican primary candidate Vivek Ramaswamy, who will serve as co-director. Wood noted that Ramaswamy's expertise as a biotech investor could be instrumental in reducing healthcare costs, which is a substantial component of federal expenditures.

While specific mechanisms of the new commission are still undetermined, it will operate similarly to an external consulting or accounting firm rather than a traditional government agency. Musk aims to slash $2 trillion from the approximately $6.8 trillion federal budget, an ambitious target that will undoubtedly spark political debates.

As the commission takes shape, several proposed cost-cutting measures could require legislative approval, while others might simply be recommended to various government agencies. According to Wood, the combined expertise of Musk and Ramaswamy promises a technologically driven and pragmatic approach to reining in federal spending.