Treasury Secretary Bessent declares housing recession, urges faster Fed rate cuts

U.S. Treasury Secretary Scott Bessent acknowledged the housing sector is in a recession due to elevated interest rates, despite characterizing the overall economy as being in "good shape" and a "transition period," according to Reuters. During an appearance on CNN's “State of the Union,” Bessent urged the Federal Reserve to implement faster rate cuts, attributing economic downturns in specific sectors to the central bank's policies. He emphasized that high mortgage rates disproportionately affect low-end consumers carrying debt. Bessent also attributed the high inflation following the COVID-19 pandemic to spending cuts initiated by the previous Trump administration. His remarks followed a warning from Federal Reserve Governor Stephen Miran and coincided with ongoing scrutiny of the Fed's potential policy decisions for its upcoming December meeting. The assessment of a struggling housing market aligns with a recent National Association of Realtors report, which revealed flat pending home sales in September.