High interest rates may have caused housing recession, Bessent says

Treasury Secretary Scott Bessent stated that high interest rates may have already pushed parts of the U.S. economy, particularly the housing sector, into recession. He argued that while the overall economy remains strong, elevated mortgage rates are negatively impacting the real estate market, with low-income consumers bearing the brunt of this downturn due to their debt burdens. Bessent reiterated his call for the Federal Reserve to accelerate interest rate cuts, criticizing the central bank's current policy as causing "distributional problems." He cited Fed Chair Jerome Powell's indication that further rate cuts might not occur in December, a decision that drew criticism from Bessent and other Trump administration officials. Fed Governor Stephen Miran echoed these concerns, warning that maintaining tight monetary policy for an extended period risks inducing a recession, especially without significant upside inflation risks. M... download the app to read more