The Federal Reserve has cut US interest rates for the first time this year following intense pressure from Donald Trump.
Central bank policymakers voted to cut rates by 25 basis points to 4.25pc at its meeting today.
It marks the first time the Fed has cut rates since December 2024 after officials kept the bank rate on hold for nine months because of fears that Donald Trump’s tariffs would be inflationary.
Policymakers at the central bank said the balance of risk has “shifted” following weaker jobs numbers, higher unemployment and weaker growth.
The Fed’s decision to cut rates follows months of pressure to lower borrowing cost from Mr Trump. The US President has repeatedly attacked the central bank, leading to widespread concerns about its independence.
