The US Federal Reserve on Wednesday lowered interest rates for the first time this year, flagging slower job gains and risks to employment as policymakers face heightened pressure under President Donald Trump.

The Fed cut the benchmark lending rate by 25 percentage points, to a range between 4.0 per cent and 4.25 per cent, while pencilling in two more cuts this year.

Only new Fed Governor Stephen Miran – who has been serving as an economic adviser to Trump – voted against this decision. He favoured a larger rate reduction of 50 basis points.

The other 11 voting members of the rate-setting Federal Open Market Committee (FOMC) supported the quarter-point cut.

This was the first FOMC meeting involving Miran, who had been chairing the White House Council of Economic Advisers. He was sworn in just before the gathering started after a swift Senate confirmation.

The central bank faces competing pressures in adjusting rates, with Trump’s sweeping tariffs fuelling inflation risks and the jobs market weakening.