New Delhi

The move by the Federal Reserve to slash interest rates sparked ripples through the 2024 presidential campaign as Democrat Kamala Harris hailed the action as a boon for middle-class families, but Republican Donald Trump said it was a bit politically motivated.

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The vitriolic rhetoric over the Fed cutting its benchmark interest rate by half of a percentage point underscored how the central bank - whose Chair Jerome Powell has pledged not to allow political pressures to influence decision-making - could be swinging momentum of the 2024 presidential race with seven weeks to Election Day.

Two duelling narratives underscored the extent to which the economy and interest rates have fast become a focal point in the race, with both sides looking to seize on the move to their electoral advantage.

Speaking at a campaign stop at a Manhattan bar, Trump framed the cut as a "very unusual number" and bad news for his opponent, whatever the Fed's motivation.

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“I guess it shows the economy is very bad, to cut it by that much, assuming they’re not just playing politics,” Trump said. “The economy would be very bad, or they’re playing politics, one or the other, but it was a big cut.”

"Welcome news for Americans who have borne the brunt of high prices," Harris said in a statement. Her words betrayed the extent to which inflation, which has hit US households hard and soured voter perceptions of President Joe Biden's handling of the economy, is one of her top political liabilities.

“I know prices are still too high for many middle-class and working families, and my top priority as President will be to lower the costs of everyday needs like health care, housing, and groceries,” Harris said, looking for an edge over Trump's agenda.

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“This is the opposite of what Donald Trump would do as president. While proposing more tax cuts for billionaires and big corporations, his plan would increase costs on families by nearly $4,000 a year by slapping a Trump Tax on goods families rely on, like gas, food and clothing,” she said.

Biden called the move an "important moment" in the battle against inflation. "Inflation and interest rates are falling while the economy remains strong," he said in a statement on X. "The critics said it couldn't happen – but our policies are lowering costs and creating jobs." The president said he'd go further into the move Thursday.