If the Federal Reserve cuts rates, is that good news?

Hoping the Federal Reserve will cut the interest rates it controls fits the “be careful what you wish for” conundrum.

There’s a good possibility the nation’s central bank will lower its Fed Funds rate – what banks pay overnight – at its next meeting Sept.17. Federal Reserve officials have acknowledged that a softening business climate may need help, overriding concerns about another bout of painful inflation.

But cheers for such economic assistance – and some observers, including President Donald Trump, think the cuts should be steep – should be tempered. Why? When the Fed hands out discounted financing, it usually indicates the economy is in trouble. Plus, the cheaper money isn’t an immediate cure.

My trusty spreadsheet examined the relationship between Fed Funds and key economic varia