Wall Street falls sharply as Fed indicates fewer rate cuts in 2025 to fight inflation

Central bank lowers benchmark federal funds rate by a quarter of a percentage point to between 4.25% to 4.5%

The US Federal Reserve cut interest rates on Wednesday, but suggested it would make fewer rate cuts than expected in 2025 amid questions over its fight to bring down inflation across the world's largest economy.

Jerome Powell, the Fed chair, said inflation had been stubborn", but insisted the central bank believed its rate hikes would continue to erode the pace of price rises.