Analysis: Incumbent U.S. presidents or ruling party challengers won five of the six election years when the Fed cut rates

Odaily Odaily News: The Federal Reserve decided to cut interest rates by 50 basis points this week, marking the start of an easing cycle by the central bank at the cusp of the closest US presidential election in nearly half a century. Since 1972, the Federal Reserve has changed interest rates except for two presidential election years, and the Fed's actions are basically divided into two types: raising and lowering interest rates. The Fed's policy rate rose in 5 election years and fell in 6 election years. In most cases, these changes are part of a cycle that began a year or more before the election year. In the 5 election years when interest rates rose, the incumbent president or the party that controlled the White House won re-election 4 times. At the same time, in the 6 election years when interest rates fell, the incumbent president or the challenger to the ruling party won 5 times. (Jinshi)