US Treasury Secretary Warns of Housing Recession Due to High Interest Rates

Imagine the economy is like a car.

The Federal Reserve controls how fast it goes by setting interest rates.

US Treasury Secretary Bessent thinks the Fed has been pressing the brakes too hard with high interest rates.

He believes this has already caused parts of the economy, especially the housing market, to slow down too much, almost like they're in a recession.

This hurts people who owe money more than those who own things.

Bessent wants the Fed to ease up on the brakes faster by cutting interest rates.

He also points out that the government spending less money has helped lower inflation, which should give the Fed more room to cut rates.

Another official, Stephen Miran, agrees that keeping the brakes on for too long could lead to a recession and also wants the Fed to cut rates more quickly.

Data shows that fewer homes are being sold, which supports the idea that the housing market is slowing down.