Dem
49
GOP
51
In reality, presidents have little power to influence the economy (at least, for the better). They can sign bills passed by Congress that raise or cut taxes, but not much other executive power directly affects the economy. Nevertheless, the decision by the Fed yesterday to reduce interest rates by 0.5% could help Kamala Harris for multiple reasons.
First, people borrowing money between now and the election for buying a house, a car, or other purchases will pay less interest than they would have last week. Credit card interest charges are also likely to go down. With many people voting based on the high cost of living, having an actual decrease in an important cost is likely to help Harris, simply because people often erroneously give the president's party credit when economic times are good and blame the president's party when they are bad.
Second, there is symbolic value in the rate cut. Harris is going to shout from the mountain tops that inflation is now over, and that prices are barely rising any more. She will probably try to take some credit for it, even though she had nothing to do with it. But the voters don't know this. They also probably don't remember that it was actually Donald Trump who nominated Fed Chairman Jerome Powell. He is the one who kept the economy out of the ditch.
Third, the economy is the top concern of many voters. Even if they don't understand what the rate cut means, it does show that somebody is doing something about the economy. Since they say they don't like the economy, having someone do something about it is good, and the incumbent president's party pretty much always gets the credit.
Fourth, although the stock market was down a bit yesterday, usually lower interest rates make bonds less attractive and stocks more attractive. This means the stock market will probably go up between now and Election Day, generating positive economic news, which usually helps the incumbent president's party. When people see their 401(k) portfolios going up, they tend not to yell "Throw the bums out." (V)