Bessent: Some sectors of the U.S. economy have already fallen into recession, and if the Federal Reserve does not cut interest rates further, other sectors will also fall into recession.

US Treasury Secretary warns that if the Federal Reserve does not further cut interest rates, more sectors of the economy may fall into recession.

On Sunday, U.S. Treasury Secretary Besent told the media that some sectors of the US economy have already entered recession, and if the Federal Reserve does not continue to lower interest rates, other sectors may also fall into recession. However, Besent did not specify which sectors.

In an interview, Besent said, the Fed’s policies have already created serious distribution problems, especially in the housing market and for low-income consumers. He believes that the Fed can solve the “housing recession” and help low-income consumers with more debt than assets by cutting interest rates.

Although the overall US economy is exhibiting strong growth, the Trump administration continues to pressure the Federal Reserve to lower interest rates more quickly, citing economic weakness.

The Federal Reserve announced a rate cut this week but, unexpectedly, strongly hinted that a rate cut in December is not set in stone, surprising the market. Previously, investors were almost certain that there would be a rate cut in December.

This shift reflects the central bank’s attempt to maintain independence in the face of government pressure, while also showing the complexity of assessing the current economic situation.

The impact of the government shutdown is now extending to economic data collection, and the lack of key economic indicators is making it much more difficult to accurately assess economic conditions. This data blackout could last from several weeks to months, further increasing market uncertainty about the true state of the economy.

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