The Trump administration is wielding the possibility that parts of the economy are in a recession as it raises pressure on the Federal Reserve to cut interest rates, hoping to ensure that the central bank will bear the blame for any economic weakness.<\/p>\n\n\n\n
Treasury Secretary Scott Bessent and Stephen Miran, President Trump\u2019s appointee to the Fed\u2019s Board of Governors who is on a temporary leave from his job leading the White House\u2019s Council of Economic Advisers, this week struck a downbeat tone about the health of the world\u2019s largest economy. Mr. Bessent went so far as to say some sectors were already contracting. He did not specify which sectors, but high mortgage rates have put housing and adjacent industries such as construction under pressure<\/a>.<\/p>\n\n\n\n \u201cI think that there are sectors of the economy that are in recession,\u201d Mr. Bessent said on CNN on Sunday. He described the economy as being in a \u201cperiod of transition\u201d because of a pullback in government spending to reduce the deficit. He called on the Fed to support the economy by cutting interest rates.<\/p>\n\n\n\n Mr. Bessent\u2019s remarks added to pressure on the Fed and deflected blame from Mr. Trump in case the economy does ultimately face a downturn, reinforcing a strategy that has been in place since the start of the year. As the administration has imposed aggressive tariffs on nearly all of America\u2019s trading partners and slashed federal spending, potentially slowing growth, it has sought to pin blame squarely on the Fed in the event of an economic downturn.<\/p>\n\n\n\n Read it all<\/a>.<\/p> New w\/ @arappeport<\/a>: The Trump admin is wielding the possibility that parts of the economy are in a recession in an attempt to raise pressure on the Fed to cut rates. The hope is that the central bank will bear the blame for any downturn https:\/\/t.co\/KWNqktMXov<\/a> @nytimes<\/a><\/p>— Colby Smith (@colbyLsmith) November 4, 2025<\/a><\/blockquote>