The United States Federal Reserve will cut interest rates by a quarter of a percentage point, from 4.00 percent to 4.25 percent, as a slowing labour market stalls economic growth.

The central bank announced its decision on Wednesday afternoon.

Economists had widely expected a 25 basis point cut, with CME Fed Watch — a group that tracks probability of monetary policy decisions — putting the odds at 96 percent. One basis point is one-hundredth of one percentage point.

Before Wednesday, the Fed had last cut rates in December by 25 basis points, the third cut last year, taking its benchmark rate to 4.25 percent to 4.50 percent where it had held steady since.

Federal Reserve Chairman Jerome Powell has emphasised that uncertainty in the economy has kept the Fed cautious, arguing that maint

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