It really depends on the type of debt. Don't pay down your mortgage by $10k. It will probably do nothing to lower your monthly payments. Do reduce high-interest credit card debt if possible. If you don't have high interest debt, save the money in cash or cash equivalents. High yield savings accounts are paying 2.5%. Also, do everything you can to increase your liquidity and access to liquidity. Maybe open a home equity line of credit, but don't dare spend from it! In a recession, liquidity is king. During the Great Recession, Leman Bros. went under due to illiquidity more than anything else. Whereas Warren Buffet made a killing because he could come up with cash when hardly anybody else could or would. The same principle applies to economic entities of any size.

> For example, paying down debt would be a good idea.

Opposite from a financial standpoint: if interests rates lower in the future you will be able to refinance.

From a job-vulnerability perspective it always lowers your risk though: better not to be very leveraged if your income can fluctuate.

You'll only be able to refinance if a bank is willing. If a recession is the driver of a fed rate reduction, that seems less plausible.