People are pumping the brakes on their expectations of economic growth

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Hello there! Feeling nostalgic about those old Taco Bell/Pizza Hut combo restaurants? Well, there's a new dynamic duo in the neighborhood: Applebee's and IHOP. We got to try out their first hybrid restaurant in the US, which is hoping to appeal to young diners.

In today's big story, the economy is showing signs of slowing down and some are saying DOGE isn't helping things.

What's on deck

Markets: An inside look at what life is like at Goldman Sachs' Dallas office.

Tech: Nvidia posted another big earnings beat.

Business: Jeff Bezos has a new rule for The Washington Post.

But first, we're taking it slow.

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The big story

Economic speed trap

The economic growth spurt some were hoping for with the new administration is coming up short.

President Donald Trump's second term promised tax cuts, deregulation, and an environment that would get an economy firing on all cylinders. But investors and economic experts are raising concerns about a slowdown this year.

Neil Dutta, the head of economics at Renaissance Macro Research, outlined how the US economy is starting to look sluggish.

The market is also indicating something's amiss, as the 10-year US Treasury yield has dipped recently.

That's a key benchmark of DOGE's success — lower yield means lower lending costs for consumers — but it's not dropping for the reasons DOGE wants, writes Business Insider's Matthew Fox. The group's cost-cutting efforts are actually further muddying the economic outlook, according to some, leading yields to drop as investors look for a safe haven.

Dutta highlighted two things that have kept the economy humming — consumer and government spending — showing signs of strain.

To Dutta's point, a trio of economic data released last Friday on consumer sentiment and housing indicated all was not well, which led stocks to have their worst day of the year.

He's not alone in his concerns. Last week, hedge fund billionaire Steve Cohen listed several factors — tariffs, less immigration, and cuts to government spending — for why he was "actually pretty negative for the first time in a while" on the economy's growth potential and where the markets are headed.

The Point72 founder said he expects a "significant correction."

Truist chief market strategist Keith Lerner is also treading carefully. Just six weeks after talking about a buy-the-dip opportunity, Lerner downgraded US equities for the first time in years from attractive to neutral.

Predictions of an economic dropoff predated DOGE and the administration.

Before the election, the International Monetary Fund forecast that the US economy's growth would ease up in 2025. And as we're less than two months into Trump's second term, a lot is subject to change.

But in the short term, DOGE's intent to clean up government waste could be speeding up the economy's slowdown. Morgan Stanley chief investment officer highlighted DOGE (in addition to tariffs and immigration) as "potential growth headwinds."

All this might sound counterintuitive. Wouldn't reducing the government's massive deficit be good for the economy? Billionaire Ray Dalio said rising debt could lead to a financial "heart attack" if not addressed.

But Cohen said the cost cutting is like a shock to the system.

"When that money's been coursing through the economy over many years and now potentially it will be reduced or stopped in many ways, it has to be negative for the economy," he said.

News brief

• The Supreme Court just handed the Trump administration a win on USAID.
• Taboola targets a $55 billion opportunity as it moves beyond content recommendation widgets.
• Satellite images show lavish palace complex as part of Saudi Arabia's $2 trillion megacity project.
• Federal workers react to Trump administration's new plan for restructuring, staff cuts: 'They'll have to fire me.'
• Gene Hackman, 'Superman' and 'The French Connection' star, dead at 95.
• Elon Musk says DOGE 'accidentally' cut Ebola prevention.
• Here's how much you'll pay in taxes if Trump's cuts get extended.
• Meta apologizes for the sudden influx of graphic content on Instagram Reels.

3 things in markets

1. Bitcoin turns bearish. The crypto token has taken a tumble — down as much as 13% from its January high — and has officially entered bear territory. Tuesday was a real drag, with bitcoin ETF investors pulling over $1.1 billion. Between policy promises falling short and last week's $1.5 billion hack of crypto-exchange Bybit, confidence in bitcoins and altcoins has faltered. The volatility takes its toll, with crypto addiction becoming a growing concern.

2. Goldman takes the Lone Star state. Southern hospitality, an open-door culture, box seats at Mavericks games — these are just some of the highlights of working at Goldman Sachs' Dallas office, according to five employees who spoke to BI. And more perks are on the horizon with Goldman planning a new Dallas campus with rooftop gardens, childcare, and more.

3. Elliott Management founder Paul Singer doesn't have fun at work. The man behind the $72 billion fund knows how to have a good time: He likes skiing, snowmobiling, and playing the keyboard. At the office, though, Singer is all work and no play, preparing for risks at every turn. In a recent interview, Singer spoke about the stresses of running a firm and his concerns about the market, but he's in it for the long haul.

3 things in tech

1. Nvidia shrugs off DeepSeek concerns with a strong earnings beat. The chip giant reported revenue of $39.33 billion, beating Wall Street's estimates by more than $1 billion. On the earnings call, Nvidia's CFO said that demand for Blackwell chips also exceeded expectations — and the stock rose in after-hours trading. CEO Jensen Huang said that AI models like DeepSeek's R1 need 100 times more compute, on the call.

2. Is having Palantir on your résumé the golden ticket for tech hires? CEO Alex Karp seems to think so. BI spoke with six technical recruiting specialists to find out if this was the case. Some weren't so sure, saying the industry prefers strong results over credentials. Palantir may also still struggle with brand recognition, and its culture could be a turn-off for those hiring.

3. Amazon's AI-powered Alexa+ is finally here. After slow progress, the tech giant unveiled its long-awaited voice assistant on Wednesday. Panos Panay, Amazon's senior vice president of devices and services, said the upgraded Alexa can invent bedtime stories, offer recipes, and book reservations through partner companies. Here's what to expect — and how much it'll cost.

3 things in business

1. Model Karolina Kurkova and her husband are at war with an exclusive private island club. In a lawsuit, the model and her real-estate broker husband are alleging Fisher Island Club's board of directors threatened them and wrongfully expelled them from the club, harming their reputation and causing them millions of dollars in damages. The private island that's just south of Miami Beach is home to multiple billionaires and high-profile celebrities. The Fisher Island Club denies the lawsuit's allegations as baseless and believes the complaint "is nothing more than disgruntled former members."

2. Jeff Bezos has an opinion on the opinion page. The Washington Post owner announced sweeping changes to the paper's opinion section in a note to staff and shared on X. The paper's op-eds must support "free markets" and "personal liberties," he said. As part of the overhaul, the opinions editor, David Shipley, has stepped down. While newspaper ownership often sets the tone for op-eds, the note is Bezos' latest controversial move after over a year of internal turmoil.

3. There will be winners and losers as the new Trump administration rewrites how business is regulated. Crypto firms including Coinbase and Robinhood have already benefited. Meanwhile, some legal experts predict an uptick in traditional securities cases and a continuation of the Biden DOJ's aggressive antitrust enforcement in cases against Apple, Google, Meta, Amazon, and Ticketmaster.

In other news

• Michelle Trachtenberg, 'Buffy the Vampire Slayer' and 'Harriet the Spy' star, dead at 39: reports.
• Saying 'yes' to DOGE: One federal worker explains why he accepted the 'fork in the road' offer.
• I was one of the first Western tourists to visit North Korea in 5 years. I was surprised we were allowed to see signs of poverty.
• Customers are fraudulently asking delivery apps for refunds on food they received.
• Want to live in the US? Trump says invest $5M for a 'gold card.'
• These sports startups raised millions in VC funding last year in areas from new leagues to women's sports.
• Photos and videos show the 'Tesla takedown' protests that have sprung up in US cities.
• How Donald Trump could change free speech as we know it.
• MrBeast has a key trait he looks for in hiring — and it's increasingly hard to find.
• Republicans labeled BlackRock as "woke." Here's a brief history of how the firm has tried to shed that description.

What's happening today

• Revised GDP data for Q4 published

The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Grace Lett, editor, in Chicago. Ella Hopkins, associate editor, in London. Hallam Bullock, senior editor, in London. Amanda Yen, associate editor, in New York. Elizabeth Casolo, fellow, in Chicago.