We finally got a rate cut. Here’s what history says will happen next

So we finally got a rate cut — and a supersized one at that.

So we finally got a rate cut — and a supersized one at that. After the move was announced Wednesday, Federal Reserve Chair Jerome Powell said officials made that decision to keep the US economy in its current “good shape.” Will that pan out? Only time will tell, of course, but recent history doesn’t make it look like it’s a sure shot by any means. Here’s a look at what could happen to the economy in terms of the labor market, inflation and the likelihood of a recession now that the Fed has lowered its sky-high benchmark lending rate. Oftentimes, the Fed cuts interest rates because it expects economic conditions will worsen drastically in the near future and it wants to preemptively soften the blow, knowing it sometimes can’t prevent a recession altogether. So in that regard, it shouldn’t be too shocking that recessions frequently begin after the Fed cuts rates.