Bessent: U.S. faces broader recession risk without more Fed cuts

Some portions of the economy are already in a recession, and others could fall into one without more interest rate cuts, Treasury Secretary Scott Bessent said on CNN Sunday.Why it matters: For as much as the economy is actually growing — close to 4% by some estimates — the administration continues to use the specter of economic weakness to lean on the Federal Reserve to cut more, faster.Driving the news: The Fed cut rates this week but surprised the market with a strong warning that another cut in December was not a foregone conclusion.Before that, investors were betting there was nearly a 100% chance of a December cut.What they're saying: Asked if the U.S. risks a recession if the Fed doesn't keep cutting rates, Bessent told CNN's Jake Tapper, "I think we are in good shape, but I think that there are sectors of the economy that are in recession.""The Fed has caused a lot of distributional problems with their policies."Between the lines: Bessent said the Fed could solve the "housing recession" with lower rates and help lower-income consumers who have more debt than assets.Without that, though, he said risks would rise. "I think that there are sections of the economy that could go into recession," he added. He did not say which sectors, though.What to watch: The government shutdown means key economic data isn't being collected or reported.It could be weeks, if not months, before there's any official indication of how the economy is actually performing.