Bessent: Some sectors of the U.S. economy have already fallen into recession, and if the Federal Reserve does not further cut interest rates, other sectors will also decline
Besant stated that the Federal Reserve's policies have caused serious distribution issues, particularly in the housing market and their impact on low-income consumers. He believes that the Federal Reserve can address the "housing recession" issue by cutting interest rates and help low-income consumers who have more liabilities than assets
U.S. Treasury Secretary warns that if the Federal Reserve does not further cut interest rates, more economic sectors may fall into recession.
On Sunday, U.S. Treasury Secretary Janet Yellen stated to the media that some sectors of the U.S. economy have already fallen into recession, and if the Federal Reserve does not continue to cut interest rates, other sectors may also enter recession. However, Yellen did not specify which sectors.
In an interview, Yellen mentioned that the Federal Reserve's policies have created serious distribution issues, particularly in the housing market and their impact on low-income consumers. She believes the Federal Reserve can address the "housing recession" issue by cutting interest rates and help low-income consumers who have more liabilities than assets.
Despite the overall strong growth of the U.S. economy, the Trump administration continues to pressure the Federal Reserve for faster interest rate cuts, citing economic weakness.
The Federal Reserve announced an interest rate cut this week but unexpectedly strongly hinted that a rate cut in December is not a certainty, surprising the market. Prior to this, investors were almost 100% certain that there would be a rate cut in December.
This shift in stance reflects the central bank's attempt to maintain policy independence in the face of government pressure, while also highlighting the complexity of assessing the current economic situation.
The impact of the government shutdown is expanding into the economic data collection field, and the absence of key economic indicators makes it more difficult to accurately assess the economic situation . This data blackout period could last for weeks to months, further exacerbating market uncertainty about the true state of the economy.
