(DCNF)—Treasury Secretary Scott Bessent pointed out Sunday on CNN’s “State of the Union” the administration’s cutback on government spending as what’s gone “unnoticed” during the shutdown, calling it one of the factors helping the U.S. avoid a recession.
The Federal Reserve announced Wednesday it would lower the interest rate benchmark by a quarter-point, bringing it to a range of 3.75%-4.00%. CNN’s Jake Tapper asked Bessent about the latest rate slash and the Fed’s warnings that the U.S. could face a recession if cuts continue rapidly, questioning if the country is at risk of a downturn.
“I believe that we are in a transition period here as we are seeing the Trump administration has cut back on government spending. What has gone unnoticed during the shutdown is, for the fiscal year, that in September 30th, the government spent less than it did the year before. And because the GDP grew — the deficit-to-GDP which had been 6.4%, 6.5% deficit, the highest when we weren’t at war — we weren’t in a recession ever. We were able to bring it down to 5.9%,” Bessent said.
“So we are bringing down government spending and I would think that the Fed would want to assist with that,” Bessent added. “Because if we go back and look, MIT just published a study that said 42% of the great inflation of 2022 came from excess government spending. So if we are contracting spending then I would think inflation would be dropping. [If] Inflation is dropping then the Fed should be cutting rates.”
Earlier in 2025, the Trump administration made significant cuts to government spending, exposing how many agencies had been using taxpayer dollars to fund programs at odds with the president’s agenda. With help from the Department of Government Efficiency (DOGE), the administration claimed to achieve savings of an estimated $214 billion — about $1,329 per taxpayer — according to an Oct. 4 update on the agency’s website.
Concerns over the Federal Reserve’s interest rate policy surfaced during the summer when President Donald Trump called for the Fed to lower rates. Fed Chairman Jerome Powell responded that if Trump had not imposed reciprocal tariffs, the U.S. central bank would have reduced rates sooner.
After months of tension between Powell and Trump, the Fed announced its first rate cut Sept. 17, lowering the benchmark by a quarter-point and setting the target range at 4.00%-4.25%. While a second rate cut was made in October, the ongoing government shutdown has delayed most major economic data releases.
Tapper pressed Bessent further, asking if he believes the U.S. could face a recession if the Fed doesn’t continue cutting rates.
“I think that we are in good shape, but I think that there are sectors of the economy that are in recession and the Fed has caused a lot of distributional problems there with their policies,” Bessent responded. “I wrote a 7,000-word essay on that. We’ve seen the biggest hindrance for housing here is our mortgage rates. So if the Fed brings down mortgage rates then they can end this housing recession. Low-end consumers who have gotten killed under President Biden, these high rates are hurting them because they have debt not assets. So I think that there are sections of the economy that could go into recession.”
Bessent previously outlined his view of a transition period for the U.S. economy, contrasting with Biden Treasury Secretary Janet Yellen’s approach. Bessent describes the economy as transitory, pointing to a broader phase of shifting, unstable conditions that are not expected to last.
In comparison, Yellen used the term “transitory” under to suggest inflationary spikes were temporary and driven by pandemic-related supply shocks. Yellen’s outlook, however, proved overly optimistic as inflation surged to extreme levels during Biden’s term in office.
All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact [email protected].
Discover the Freedom of True American Healthcare: Why America First is Revolutionizing Protection for Patriots
In a world where government overreach and skyrocketing premiums are squeezing the life out of hardworking Americans, one innovative agency is standing tall for liberty and affordability. Meet America First Healthcare—the private health insurance powerhouse dedicated to putting *you* first.
Founded by entrepreneur Jordan Sarmiento, this isn’t just insurance; it’s a shield for your family’s future, built on the unshakeable belief that private enterprise delivers better results than bureaucratic red tape.
Picture this: Jordan’s own story hits close to home for so many of us. A sudden medical emergency landed him with a staggering $95,000 bill. Under a traditional plan? He’d be buried in debt. But with America First’s patented health insurance, that nightmare shrank to just $500 out-of-pocket. That’s not a fluke—it’s the promise of coverage that works *for you*, from day one.
Breaking Free from the Chains of Conventional Coverage
Let’s face it: The status quo stinks. Marketplace.gov and big-insurance behemoths hit you with sky-high deductibles—thousands you’d have to pay before benefits even kick in—leaving massive holes in your protection. Need a routine mammogram, colonoscopy, or EKG? Good luck without forking over more cash. And don’t get us started on the gaps in dental, vision, or critical illness support when heart attacks, cancer, or kidney failure strike.
America First Healthcare flips the script. As a proud advocate for private solutions over government intervention, they craft custom plans that slash costs by 20% compared to traditional options. We’re talking comprehensive coverage that includes:
- Preventative and Wellness Care: Physical exams, screenings, and EKGs covered right away—no waiting games.
- Telemedicine Access: Virtual doctor visits anytime, anywhere, for that peace of mind.
- Accident and Critical Illness Protection: Real safeguards against life’s curveballs.
- Add-On Boosts: Dental, vision, disability, and supplemental plans to plug every leak.
Whether you’re an individual stepping off your parents’ plan, a growing family with kids in tow, or a small business owner tired of employee headaches, their tailored approach fits like a glove. Small businesses? Unlock group benefit rates usually reserved for corporate giants—without the red tape.
And for those in-between moments? Short-term insurance steps in as an ultra-affordable bridge, while life insurance ensures your loved ones are never left vulnerable.
Real Americans, Real Wins
Don’t just take our word for it. Thousands of freedom-loving families have already ditched the old system for America First. “Finally, insurance that aligns with our values and actually saves us money,” shares one client. Another raves, “Our small team got big-business perks without the hassle—it’s a game-changer.” These aren’t scripted lines; they’re the voices of patriots who’ve reclaimed control over their health destiny.
Your Move: Secure Your Shield Today
Why settle for less when you can demand better? America First Healthcare isn’t about profits—it’s about powering the American dream with reliable, value-driven protection. Plans are available year-round, no open-enrollment nonsense.
Ready to uncover the gaps in your current setup and lock in savings? Schedule your FREE healthcare review today at America First Healthcare. In under 15 minutes, their experts will map out options that fit your life, your budget, and your principles.
America First isn’t just healthcare—it’s a declaration of independence. Join the movement. Your family’s freedom starts now.