A heated dispute has erupted in the White House between Elon Musk, the head of the US Department of Government Efficiency (DOGE), and Treasury Secretary Scott Bessent. According to Axios, the incident occurred at a meeting with President Donald Trump and other senior officials. The main reason for the dispute was the management of the US Internal Revenue Service (IRS) and approaches to cutting government spending, which exposed deep disagreements within the administration on key economic issues.

According to sources close to the administration, the conflict began when Bessent criticized Musk's initiatives related to streamlining the IRS and cutting budget costs. The Treasury Secretary accused the DOGE chief of being overly ambitious and failing to implement promised reforms, pointing to insufficient planning and risks to financial stability. In response, Musk, known for his outspokenness, went on the offensive, calling Bessent a "Soros agent" and accusing him of incompetence. According to the sources, Musk also cited Bessent's poor experience running an investment company, which, in his opinion, undermines the secretary's credibility.

The situation escalated to the point that President Trump had to intervene to calm the two sides. According to Politico, published on April 23, 2025, such skirmishes within the administration are becoming more frequent as preparations are underway for a major tax overhaul planned for 2026. The reform, aimed at simplifying the tax code and lowering rates for corporations, is one of Trump’s priorities for a second term. But disagreements between Musk, who is pushing for radical measures to cut bureaucracy, and Bessent, who favors a more conservative approach, threaten to stall the process.

Elon Musk, appointed head of DOGE in early 2025, has been given broad powers to review federal agencies. His department, created at Trump’s initiative, is supposed to identify inefficient spending and propose ways to cut it. According to The Wall Street Journal, in its first months of operation, DOGE has already initiated audits of several agencies, including the IRS, which has caused discontent among some members of the administration. At the same time, Scott Bessent, a seasoned financier and supporter of traditional economic approaches, advocates for gradual changes to avoid destabilizing markets.

Experts say the conflict between Musk and Bessent reflects a broader struggle within the Trump administration.

"Musk represents a force for radical change, while Bessent represents caution and continuity.""We're not going to see any changes," political analyst James Carter told CNBC.

According to him, the outcome of this confrontation could determine the direction of US economic policy in the coming years.

Amid the White House row, shares of Musk-linked companies including Tesla and SpaceX have been volatile, which Bloomberg analysts say is due to uncertainty surrounding his political role. At the same time, investors are closely monitoring the actions of Bessent, whose reputation as an asset manager remains in question after criticism from Musk.

The Trump administration has yet to make an official statement on the incident. A White House spokeswoman told Reuters that "disagreements within the team are a normal part of the work process." However, insiders stress that the tensions between Musk and Bessent could have long-term implications for the president's economic agenda.

The situation is complicated by the fact that the tax reform that is at the center of the controversy is causing heated debate not only within the administration, but also in Congress. According to The New York Times, Democrats have already criticized DOGE’s proposals, calling them “populist and ill-conceived.” At the same time, Republicans are pushing for faster reforms, which is increasing the pressure on Musk and Bessent.

In the coming weeks, the White House will likely face internal conflicts to maintain unity ahead of key legislative initiatives. Observers agree that the administration’s ability to overcome such divisions will be an important indicator of its effectiveness in pursuing an ambitious economic agenda.