Too Late To Avoid A Recession, But Let's NOT Make It Worse!

It looks like it is too late to avoid a recession at this point, as some degree of one is already baked into the cake at this point.  Not only are there several big headwinds right now (rising oil prices, rising insurance rates, record-high credit card debt, student loans coming due, Congressional dysfunction, and the prospect of a government shutdown), but the FERAL Reserve has obstinately kept interest rates high at a Fed Funds Rate of 5.25%.  While it may not seem high by historical standards, combined with their Quantitative  Tightening and record-high levels of debt throughout the economy, it can easily feel like the double-digit interest rates of the late 1970s and early 1980s.  Aside from oil (thanks to Russia and OPEC) and a few other things, which interest rate hikes are utterly useless and even counterproductive against, the recent inflation has already been largely defeated, and may soon turn to deflation.  Which sounds great in theory, but in practice is anything but.

While it is most likely too late to avoid a recession at this point, the very least the Fed could do is cut interest rates yesterday and end Quantitative Tightening to avoid an even worse recession or depression.  Don't say you haven't been warned.

UPDATE: As of September 30, the government shutdown was averted, but the issue was really just delayed by 45 days via a stopgap funding bill.  Additionally, as of early October, crude oil prices began falling but diesel fuel remains stubbornly high for a number of reasons such as a refinery crunch.