New Delhi, Sept. 18 -- The U.S. Federal Reserve cut interest rates for the first time this year, reducing its benchmark policy rate by 25 basis points to a 4%-4.25% range. The move signalled the start of a monetary easing cycle aimed at supporting a cooling labour market, even as inflation remains high.

The Fed said future rate decisions would depend on incoming data, the evolving economic outlook, and the balance of risks. It acknowledged that economic growth slowed in the first half of the year and job gains have moderated, though inflationary pressures remain elevated.

Following the announcement, Indian markets reacted positively. The Sensex jumped 447 points, or 0.5 per cent, to day's high of 83,141.21, while the Nifty gained 117 po...