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Musk may have found limits
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This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Today, cybersecurity reporter Jamie Tarabay looks at some of the reaction to Elon Musk’s drive to slash the federal bureaucracy. Sign up here and follow us at @bpolitics. Email our editors here.

Hitting Limits

Elon Musk may finally have found his limits: The Trump loyalists now in charge of some of the government departments he’s looking to slash.

After a mass emailing to federal employees over the weekend ordering them to submit a five-bullet-point account of their work by midnight tonight or else, the new heads of several government departments said, essentially, we’ll handle this ourselves, thank you very much.

FBI director Kash Patel, on the job for a single day, told staff to “pause any responses.” Defense Secretary Pete Hegseth said any responses would be coordinated, “when and if required.” Employees at Homeland Security, run by Kristi Noem, received an email late yesterday saying management would respond on behalf of all workers. At the Agriculture Department, employees were told a response to the email is “voluntary and not required,” Bloomberg Government reports.

Musk holds up a chainsaw at the Conservative Political Action Conference. Photographer: Will Oliver/EPA

It’s unclear whether employees at other government departments are still on the hook. The Washington Post reported this afternoon, citing unnamed sources, that the Office of Personnel Management has told agency leaders that they can ignore Musk’s public threat that failure to comply “will be taken as a resignation.”

For weeks, Musk has touted the achievements of his Department of Government Efficiency in winnowing the ranks of federal employees, trimming office space and ending aid contracts, doubling down on the mandate he was given by President Donald Trump.

But his careening attempted makeover of the federal bureaucracy has caused whiplash and confusion within the federal workforce. Several departments, including Energy and Agriculture, have reversed terminations of some critical employees – think nuclear bomb experts – swept out in mass firings. His efforts also have generated multiple lawsuits.

Unions representing thousands of federal employees sued the Trump administration over the “what did you do last week” email. Other lawsuits have challenged efforts to cut the government workforce and spending programs, as well as the constitutionality of DOGE and its access to government computer systems.

It was in a filing in one of the lawsuits that the White House said Musk doesn’t technically work for the Department of Government Efficiency and has no formal authority to make decisions for the government.

Trump, who has urged Musk to be “more aggressive,” doesn’t seem to have any second thoughts. Today he called the demand for the memo a “genius” move.  Jamie Tarabay

Don’t Miss

Trump deepened Washington’s split with allies over Ukraine, withdrawing US condemnation of Russia’s 2022 invasion at the United Nations and among Group of Seven nations. 

The president said he expected planned tariffs on Canada and Mexico will go ahead next month as planned, though a US official cautioned the schedule could be less certain.

Treasury Secretary Scott Bessent and congressional leaders will begin meeting weekly as Republicans look to shape a tax cut package with a year-end deadline.

The Federal Trade Commission will “vigorously” sue to block illegal mergers, the agency’s new chairman said, highlighting support for the repeated deal challenges during the Biden era.

The Supreme Court dealt a setback to abortion opponents, refusing to reconsider a 2000 decision that lets states and cities create protective zones to shield patients from being approached near clinic entrances.

New York City’s controversial traffic tolling program is testing Trump’s ability to reach beyond his federal fights over citizenship and government efficiency all the way down to a local brawl in Wall Street’s backyard.

Watch & Listen

Today on Bloomberg Television’s Balance of Power early edition at 1 p.m., hosts Joe Mathieu and Kailey Leinz interviewed Republican Representative Nicole Malliotakis of New York about the sweeping GOP tax and spending resolution headed to the House floor this week.

On the program at 5 p.m., they talk with Maya MacGuineas, president of the Committee for a Responsible Federal Budget, about the Republican fiscal plan’s impact on the deficit and federal debt.

On the Big Take podcast, host Sarah Holder talks with farmer Jim Hayes, as well as the hosts of Bloomberg’s Odd Lots podcast, Joe Weisenthal and Tracy Alloway, about how bird flu threatens the chicken supply chain and public health — and what, if anything, can be done to lower egg prices. Listen on iHeart, Apple Podcasts and Spotify.

Chart of the Day

US economic data took an negative turn last week as a slew of numbers came out worse than economists surveyed by Bloomberg came out worse than expected. That could be an early indicator that the economy is in a decline. Some indications of a slower economy include the overall S&P US purchasing managers employment gauge index, which showed jobs contracted in February driven by a 5-point decrease at service firms. Also, average weekly hours worked in January hit the lowest since the great recession aside from March 2020, when the economy closed due to the pandemic. Consumer sentiment, meanwhile, dropped by more than expected in February, partly due to concerns about tariffs may raise consumer prices. — Alex Tanzi

What’s Next

The Conference Board’s read of consumer confidence in February will be released tomorrow.

New home sales for January will be reported Wednesday.

The Federal Reserve’s preferred gauge of inflation for January will be reported Friday.

Trump delivers an address to a joint session of Congress March 4.

A 25% tariff on goods from Canada and Mexico is scheduled to take effect March 4. 

The deadline for tariffs on steel and aluminum taking effect is March 12.

Current government funding authority expires March 14.

Seen Elsewhere

  • A professional organization of psychologists is warning that use of artificial intelligence chatbots "masquerading" as therapists may encourage vulnerable people to harm themselves, the New York Times reports.
  • A small town in Pennsylvania is tearing itself apart over questions about gender, sports and pronouns that have permeated daily life, reflecting the wider culture war, the Wall Street Journal reports.
  • The toughest restaurant reservation to get in the country is at the Agency Dining Hall at CIA headquarters, where high-quality but modestly priced meals are whipped up by a chef identified only by his first name, according to the Washington Post.

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