Fed Cut May Soften Economic Landing, Recession Seen As Inevitable The Federal Reserve cut its benchmark rate by 50 basis points Wednesday. The move to cut its rate to 1% is seen as an effort to mitigate one of the worst economic downturns since the Great Depression. It is questionable, however, whether the relatively blunt tool of adjusting the target rate will have the desired effect. Ultimately, it is ING Investment Management’s view that while the rate cut may help soften the economy’s landing, a recession is inevitable.
