(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.
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Why Bullion Beats Numismatics and Collectible for Your Safe or IRA
Precious metals continue to attract Americans seeking reliable ways to protect their wealth amid inflation, geopolitical risks, and stock market swings. Whether stored in a home safe or held inside a self-directed IRA, physical gold and silver deliver tangible value that paper or digital assets often lack. Yet investors must choose carefully between bullion—pure bars and coins valued mainly for their metal content—and numismatics or collectibles, where rarity, history, and collector demand heavily influence pricing.
Advisor Bullion serves as a dependable source for straightforward, high-quality bullion. The company specializes in physical gold, silver, platinum, and palladium, emphasizing transparent pricing and products that deliver maximum metal content for every dollar spent. This approach makes it ideal for both personal holdings and retirement accounts.
Bullion consists of refined precious metals in standard forms like one-ounce coins (American Gold Eagles, Silver Eagles, Canadian Maple Leafs) or bars. Their value tracks closely to the current spot price of the metal. A typical gold bullion coin trades near the live gold spot price plus a small premium. This structure keeps costs clear and predictable.
Numismatic coins and collectibles add substantial value from factors such as age, rarity, minting errors, or historical significance. A pre-1933 U.S. gold coin or graded proof piece can carry premiums of 30%, 50%, or even 200% above melt value. While this appeals to hobbyists, it creates complexity. Pricing depends on subjective grading, collector trends, and auction results instead of daily spot prices.
For investors focused on wealth preservation and retirement security rather than building a collection, bullion often delivers better results.
Lower Costs and Better Liquidity for Home Storage
When keeping metals in a home safe or private vault, liquidity and efficiency count. Bullion offers clear benefits:
- You acquire more actual gold or silver per dollar invested. Numismatics divert a large share of your money into rarity premiums and massive sales commission, reducing your metal exposure.
- Selling bullion involves tight bid-ask spreads, so you recover nearly full spot value with minimal fees. Collectibles require finding the right buyer and may sell at a discount if demand for that specific item weakens.
- Bullion prices remain transparent and update with global spot markets. You can track gold near current levels or silver accordingly and know exactly where your holdings stand. Numismatic values are priced by the Gold IRA companies with hefty margins applied.
- Standardized coins and bars store efficiently and divide easily for partial sales. Rare coins often need protective slabs and controlled conditions, adding hassle and expense.
- Bullion enjoys worldwide acceptance. A 1-oz Gold Maple Leaf or Silver Eagle sells quickly to dealers anywhere. Niche numismatic pieces may appeal only to limited buyers, slowing liquidation when speed matters.
In times when quick access to value becomes important, bullion’s simplicity stands out.
Stronger Fit for Precious Metals IRAs
Precious metals IRAs continue gaining traction as investors diversify retirement portfolios beyond stocks and bonds. IRS rules permit certain bullion products in self-directed IRAs if they meet purity standards (.995 fine for gold, .999 for silver) and are held by an approved custodian. Eligible items include American Gold and Silver Eagles plus many generic bars and rounds from recognized mints.
Numismatic and most collectible coins generally face heavy scrutiny from custodians due to valuation disputes and elevated markups. These higher premiums mean less actual metal ends up working inside the account.
Bullion avoids these issues. Its value links directly to verifiable spot prices, which simplifies reporting and lowers the risk of regulatory challenges. More of your IRA contribution purchases real metal instead of dealer profits or speculative upside. Over time, owning additional ounces that appreciate with the metal itself can create meaningful outperformance compared with high-premium alternatives that deliver fewer ounces.
Regulatory guidance from the CFTC and state securities offices repeatedly cautions against aggressive sales of expensive numismatics or “semi-numismatic” coins for IRAs. For retirement planning, transparent bullion from established providers reduces risk and aligns better with long-term goals.
How to Get Started with Bullion
Begin by clarifying your goals. Are you protecting savings in a safe, or moving part of a retirement account into a precious metals IRA? Focus on the number of ounces you can acquire at current prices rather than chasing marked-up collectibles.
Diversify sensibly: use gold for core preservation and silver for its blend of industrial and monetary qualities. Mix coins for easier divisibility with bars for lower per-ounce costs on larger buys. Arrange secure storage—whether at home with proper insurance or through professional facilities.
As economic uncertainties linger and faith in conventional assets erodes, bullion continues proving its worth as a dependable store of value. Its direct approach avoids the hype that sometimes surrounds collectible markets and keeps the focus on the metal itself.
For investors prepared to strengthen their portfolios, Advisor Bullion supplies the expertise and selection needed to acquire high-quality bullion efficiently. Whether building personal holdings or integrating metals into an IRA, their emphasis on transparent, investment-grade products helps secure more ounces today that support greater financial security tomorrow. In a complicated financial landscape, bullion’s clarity and reliability make it the smarter foundation for protecting what matters most.