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I don't think rate cuts t have direct impact on business investment, as I've argued for years cost of capital is not the determinant, demand is. But where rate cuts could help, is weakening USD, helping improve ROW conditions, which could help demand, which could help investment.
That's a lot of second and third order effects though. So if your model for how rate cuts will help stave off a recession is through business investment, I think the channel is via ROW.
The Fed backing off their absurd stance last summer and fall obviously had huge benefits to housing, and on the margin consumer spending more broadly. And since the US consumer is the GOAT, the biggest benefit has probably already been had.
So much of ex-US consumer data right now looks like garbage. Only way Fed cuts help that is through USD. Otherwise, your move Germany, Korea, China and everyone else who can't manufacture domestic demand.
