US Treasury Secretary Blames Fed for Economy's Slowing Pace
The US economy is now considered to be in a "transition period", according to Treasury Secretary Scott Bessent. While the government has cut spending under the Trump administration, which he believes led to high inflation after the COVID-19 pandemic, some sectors of the economy are actually experiencing recession or are at risk of it.
Bessent pointed fingers at the Federal Reserve for not cutting interest rates as quickly as needed, blaming this for exacerbating the economic slowdown. He cited the housing market as a key example, stating that if mortgage rates were lowered by the Fed, it could bring an end to the current housing recession.
This stance is somewhat contradicted by newly appointed Federal Reserve Governor Stephen Miran, who warned of high interest rates triggering a recession just one day earlier in an interview with The New York Times. While consumer confidence remains low and job availability is still uncertain, existing home sales have shown some signs of resilience lately, particularly after recent mortgage rate cuts.
The Fed's most recent decision to cut interest rates by a quarter point was seen as an effort to stimulate the economy, which has been under pressure due to inflation concerns. However, other economists are skeptical about its effectiveness and predict that interest rates may not be lowered significantly enough to boost economic growth.
It remains unclear whether the US economy will avoid recession or if it's already entering a downturn. The Bureau of Labor Statistics stopped collecting data during the ongoing government shutdown, which has further muddied the waters.
The US economy is now considered to be in a "transition period", according to Treasury Secretary Scott Bessent. While the government has cut spending under the Trump administration, which he believes led to high inflation after the COVID-19 pandemic, some sectors of the economy are actually experiencing recession or are at risk of it.
Bessent pointed fingers at the Federal Reserve for not cutting interest rates as quickly as needed, blaming this for exacerbating the economic slowdown. He cited the housing market as a key example, stating that if mortgage rates were lowered by the Fed, it could bring an end to the current housing recession.
This stance is somewhat contradicted by newly appointed Federal Reserve Governor Stephen Miran, who warned of high interest rates triggering a recession just one day earlier in an interview with The New York Times. While consumer confidence remains low and job availability is still uncertain, existing home sales have shown some signs of resilience lately, particularly after recent mortgage rate cuts.
The Fed's most recent decision to cut interest rates by a quarter point was seen as an effort to stimulate the economy, which has been under pressure due to inflation concerns. However, other economists are skeptical about its effectiveness and predict that interest rates may not be lowered significantly enough to boost economic growth.
It remains unclear whether the US economy will avoid recession or if it's already entering a downturn. The Bureau of Labor Statistics stopped collecting data during the ongoing government shutdown, which has further muddied the waters.
the thing is, i dont think its that simple... us treasury secretary blaming fed for economic slowdown? sounds like theyre just trying to save their own backs 
especially with all these cuts under trump adminstration it does seem some sectors r doing alright but recession or not its still a big deal 
i mean, cant the fed do better than lowering interest rates by 1/4 point? seems like a drop in the ocean compared to what they need to do. and what about them saying recession is triggered by high interest rates? that sounds like a classic case of blaming the messenger 
. And what's with all these conflicting opinions from the people in charge? It's like trying to have a conversation with my aunt about politics... it just gets confusing 
. I guess we'll just have to wait and see if the US economy can ride out this recession thing or not 
.