President-elect Donald Trump appointed Elon Musk and Vivek Ramaswamy to lead the Department of Government Efficiency (DOGE) with the goal of cutting government spending — an initiative some view as key to reducing the deficit.

Yahoo Finance’s Julie Hyman joins Wealth! to break down the key areas of federal spending, including Medicare, Social Security, and rising interest costs.

While calls for reduced spending grow, Hyman notes the ongoing debate on Wall Street over whether the rising debt-to-GDP ratio will impact the economy.

Watch the video above for a deeper dive.

To watch more expert insights and analysis on the latest market action, check out more Wealth here.

This post was written by Cindy Mizaku.