Bessent: U.S. faces broader recession risk without more Fed cuts

Treasury Secretary Scott Bessent argues that some economic sectors are already in recession. The administration is pressuring the Federal Reserve to cut interest rates further and faster. The Fed recently cut rates but signaled a potential pause in December, surprising investors. Bessent believes lower rates could alleviate the "housing recession" and aid lower-income consumers. He warns that without further rate cuts, more economic sectors could fall into recession. Bessent claims the Fed's policies have created distributional problems within the economy. He suggests that the Fed has the means to address the "housing recession". The government shutdown is preventing the collection and reporting of crucial economic data. It may take weeks or months to accurately assess the economy's performance. The administration is utilizing fears of economic weakness to push for more rate cuts.