Treasury Secretary Scott Bessent said Sunday that the Trump administration’s recent cutbacks in government spending have been a key, albeit “unnoticed,” factor in strengthening the U.S. economy and helping to avoid a looming recession.

Appearing on CNN’s “State of the Union,” Bessent argued that the reduction in federal expenditures should prompt the Federal Reserve to continue lowering interest rates. His comments followed the Fed’s latest quarter-point rate reduction, which set the benchmark in the 3.75%-4.00% range.

CNN’s Jake Tapper questioned the Treasury Secretary about the risk of a recession, referencing warnings from the Fed that rapid rate cuts could trigger an economic downturn.

Bessent responded by calling the current situation a “transition period,” highlighting that gove

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