Will an Interest Rate Cut Help?

Will an Interest Rate Cut Help?

Economic growth has slowed enough to prompt a reduction in interest rates from the Federal Reserve, and economists see a nearly one in three chance of recession in the next year, according to a Reuters poll of economists.

Housing is already in recession and paralysis has overtaken many areas of lending. In the poll, in which 114 analysts took part, the median of 78 forecasts was for growth to ease to a 2% annual rate in the fourth quarter before picking up to 2.3% in the first quarter next year.

The median forecast of 66 economists who gave an estimate put the chance of recession in the next 12 months at 31.5%.

Will the Fed cutting interest rates help at this point?  What do you think?  Is it too little too late?  We'd love to hear your opinion.  Click the comment link below and tell us what you think.