Historically, Interest rates have trended down. What happens during next recession if rates are still low?

I pulled up a historic chart of Interest rates, and I noticed that they appear to have trended down over the last several decades.

This leads me to think, what will happen if the next recession occurs in 1-2 years from now while interest rates are still very low?

The Fed will have no ammo left to reduce rates significantly which will make any recovery much more drawn out. We could experience a "lost decade" as Japan has.

I'm genuinely scared that the Fed blew their load during the 2008 recession, and now it feels like they waited too long to start rising rates again, so when we do have another crash, they will have almost no wiggle room to reduce rates as they are already so low.

Am I well informed regarding QE and interest rates in regard to a recession, or is this an overblown fear?

Submitted October 27, 2018 at 12:31PM by LuxGang https://ift.tt/2Rm72yl