Central bank makes cuts after holding rates at two-decade high in aggressive bid to cool inflation

• What will a Federal Reserve interest rate cut mean for you?

The US Federal Reserve cut interest rates on Wednesday for the first time in four years, stepping back from its aggressive bid to cool the world’s largest economy and reduce inflation.

America’s central bank, which lifted rates to a two-decade high after price growth surged to its highest level in a generation, announced a cut of 50 basis points.