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 US President Donald Trump.

The Fed cut the benchmark lending rate by 25 basis points, to a range between 4.0 percent and 4.25 percent, 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.

The Fed typically holds rates at higher levels to bring inflation back to its two-percent target, but could slash rates to support the labour market too.

On Wednesday, the Fed lifted its 2025 growth forecast to 1.6 percent from June's 1.4 percent projection.

It made no change to its unemployment and inflation forecasts.

Meanwhile, Trump has intensified pressure on the Fed this year with repeated calls for rate cuts.

Besides appointing Miran when another official retired early, the president moved in August to fire Fed Governor Lisa Cook, sparking a legal fight that could have prevented her from attending the gathering. (AFP)