It typically takes a reduction in interest rates of 4% to pull the economy out of a recession. Interest rates are at 2% right now so if we enter a recession, it

It typically takes a reduction in interest rates of 4% to pull the economy out of a recession. Interest rates are at 2% right now so if we enter a recession, it'll be a doozy. Europe has been testing out negative interest rates and are finding out that negative interest rates are not stimulating the economy. The fed is expected to try out quantitative easing mostly by buying various dated treasuries from the open market and a lesser amount of the toxic debt banks are holding like CDOs or mortgage backed securities just like they did in 2008/2009. This all assumes a recession will happen which is debatable. If a recession was guaranteed, the stock market, which functions as a leading indicator, would already be down and it's not -- it's relatively flat.