They often cut rates when a recession is in sight, and raise them when they think the market will handle it. I don't think cutting rates directly causes recessions. Interest rates are still too low but they are about to be cut to save the banks which invested in low interest bonds, presumably.

I guess that would have been more correct, yes. It shows the same pattern in any case.

What it shows is that the Fed starts cutting rates shortly before or shortly after a recession begins, exactly as you would expect. In some cases they started raising again too early and had to backtrack.