The stage is set. The world’s largest economy is about to embark on a pivot that’ll go 0 to 1 faster than Peter Thiel could ever imagine. In the halls of Washington and the boardrooms of Wall Street, everyone is trying to get a front row seat to this dance. At the center of it all stands Jerome Powell and Scott Bessent watching, waiting, ready to make their move.

The dance begins.

The first thing to do is to step back and look at the core problem at hand: the only real way to put a dent in the US deficit is by bringing interest rates down. With the U.S. paying $800 billion annually in interest, meaningful deficit reduction is nearly impossible without lower rates or restructuring those payments.

But the real twist? The first move in this grand economic maneuver to pay down debt wasn’t a Fed decision, QE, or Treasury operations—it was USAID and Elon Musk. A massive wave of government job cuts wasn’t on my bingo card, but in hindsight, it’s the first step in this dance. It shifts the narrative, setting the stage for a policy pivot and a realignment toward private market growth rather than government jobs.

Consider this: In the 12 months leading up to February 2025, 95% of job growth was concentrated in the public sector.

But that’s not the goal of this administration at all. They want 95% of job growth to shift back to the private sector.

This means we’re witnessing a transition—a ripping off of the band-aid. Public sector job growth is being scaled back. The result? Short-term pain in the data. But once this transition stabilizes, expect the gas pedal to get pressed hard, accelerating the shift from public to private job creation. Ideally, long-term gain. Preferably, a dance that makes the crowd stand on its feet.

Even better, the Fed now has a reason to cut rates and help the administration reduce the deficit.

Powell has been saying: Give me the numbers I need, and I’ll cut. They now have the numbers after slashing a basket of government jobs thanks to DOGE and Elon Musk. And let’s not forget—it was Trump who appointed Jerome Powell in the first place. Meanwhile, Scott Bessent has a plan.

The data is lining up perfectly for the Fed. The Atlanta Fed’s GDPNow estimate for Q1 GDP has collapsed:

• Four weeks ago: +3.9%
• Two weeks ago: +2.3%
• Now: -2.8%

This isn’t just a slowdown. It’s a perfectly coordinated dance. Cut government jobs, change the economic estimates, slash rates, reduce the deficit, and then tango into a sound of horns playing for private sector job growth.

The greatest economic dance of our time is in motion. The curtains are open. Everyone is watching.