India, Sept. 18 -- The US Federal Reserve has lowered interest rates for the first time in 2025, flagging slower job gains and risks to employment, but pencilled in two more rate cuts before the year ends.

The US Fed cut the benchmark lending rate by 25 basis points, to a range between 4.0% and 4.25%. At the same time, the central bank lifted its US GDP growth forecast to 1.6% for 2025 from 1.4% in June. It made no change to its unemployment and inflation forecasts.

One basis point is one-hundredth of a percentage point.

The US Fed, in a statement announcing its rate cut, said that "downside risks to employment have risen," even as inflation has "moved up and remains somewhat elevated". It noted that job gains have slowed while the une...