The Federal Reserve's decision this week to cut interest rates by 50 basis points marks the start of a loosening cycle by the central bank in the most intense period leading up to a US presidential election in nearly half a century. Since 1972, with the exception of two presidential election years, the Federal Reserve has adjusted interest rates, with its actions largely falling into two categories: rate hikes and rate cuts. The Fed’s policy rate has increased in five election years and decreased in six election years. In most cases, these changes have been part of cycles that began a year or more before the election year. In the five election years when interest rates rose, the incumbent president or the party controlling the White House won re-election four times. Meanwhile, in the six election years when interest rates fell, the incumbent president or the ruling party's challenger won five times. (Jin Shi)