U.S. economy needs significant changes, warns Treasury Secretary

Treasury Secretary Scott Bessent stated that the U.S. economy needs a "detox" to address issues from years of low interest rates and high deficits. He acknowledged the need for painful adjustments but suggested a recession could be avoided, which many experts dispute. Federal debt has surged from $10 trillion in 2008 to $34 trillion now, with annual deficits exceeding $1 trillion since 2018. The economy has become reliant on cheap borrowing, leading to a weakened manufacturing sector and rising inflation that outpaces wage growth. Bessent's approach includes lowering Treasury yields to ease debt burdens, but this conflicts with the need for fiscal discipline. The current economic situation reflects deep-rooted issues that may require significant changes, which could be politically and economically challenging.