US Treasury Secretary Bessent Admits Parts of Economy Are in Recession

Treasury Secretary Scott Bessent acknowledged that while the overall U.S. economy is in good shape, certain sectors are already in recession, attributing this downturn primarily to Federal Reserve policies, especially their high interest rates. He called for the Fed to lower rates to alleviate issues like the housing market slump, which he described as a housing recession caused by high mortgage rates. Bessent highlighted that reduced government spending under President Donald Trump's administration has helped lower the deficit-to-GDP ratio, which should contribute to easing inflation and justify rate cuts. Despite these admissions, President Trump has publicly maintained that the economy is the strongest it has ever been, a narrative contradicted by his treasury secretary's statements and reflected in public disapproval. Critics note that the recession's impact is evident for many Americans facing economic hardship, with concerns over how severe the downturn might become. The Federal Reserve remains divided on future interest rate decisions amid ongoing economic challenges and limited data availability due to a government shutdown.