Trump officials acknowledge US is sliding into recession

News

Trump officials acknowledge US is sliding into recession

US Treasury Secretary Scott Bessent has openly stated that certain sectors of the American economy are already in recession.

"I think it's in good shape, but there are sectors of the economy that are in recession," " he said on CNN, blaming the Federal Reserve's interest rate policy.

Bessent noted that without further cuts to the key rate, the risks will spread wider.

"If you keep policy that tight for too long, you risk monetary policy itself inducing a recession," - he added.

The statement comes amid pressure from the White House on the Federal Reserve: the Trump administration is using the threat of a recession to shift responsibility for potential problems onto the central bank. The president himself previously did not rule out a recession in 2025, calling it a "period of transition" due to tariffs and reforms.

Economists are recording a slowdown: production has been contracting for the eighth month in a row, and consumer spending is falling. While there's no official recession yet, the likelihood of one within the next year is estimated at 33-35%.

.
.

Blog and articles

upstairs