U.S. Treasury Secretary Scott Bessent has issued a stark warning about the risk of broader recession in the economy, emphasizing that failure to cut interest rates could exacerbate the situation. He noted that certain sectors are already facing recessions, particularly highlighting the housing market as being adversely affected by high interest rates. Bessent suggested that if inflation continues to fall, the Federal Reserve should take proactive measures to lower rates in order to mitigate potential economic downturns. He also credited recent spending cuts with helping to avert a more severe recession risk, while stressing the need for the Federal Reserve to support these efforts by facilitating rate reductions.