The US central bank has cut interest rates for the first time this year, in a move president Donald Trump will likely declare is long overdue.

Mr Trump has demanded cuts to borrowing costs from the Federal Reserve ever since worries emerged in the world’s largest economy that his trade war would stoke US inflation.

The president – currently in the UK on a state visit – has, on several occasions, threatened to fire the Fed chair Jay Powell and moved to place his own supporters on the bank’s voting panel.

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He was yet to comment on the rate decision.

The fallout from the row has resonated globally, sparking worries about central bank independence. Financial markets have also reflected those concerns.

The bank, which has a dual mandate to keep inflation steady and maintain maximum employment, made its move on Wednesday after a major slowdown in the employment market that has seen hiring ease sharply.

The latest economic indicators have shown caution over spending among both companies and consumers alike.

The Fed said the economy had moderated.

Inflation, while somewhat elevated due to the effects of higher import costs from the trade war, has not taken off as badly as some economists, and the Fed, had initially feared.

Its 12-member panel backed a quarter point reduction in the Fed funds rate to a new range of between 4% to 4.25%.

The effective interest rate is in the middle of that range.

Crucially for Mr Trump, who is trying to inspire growth in the economy, the Fed signalled more reductions ahead despite continued concern over inflation.

Financial markets saw a further two quarter point rate cuts before the year’s end.

The dollar, which has weakened in recent days on the back of expectations of further rate cuts, fell in the wake of the decision and the Fed’s statement.

It was trading down against both the euro and pound. Sterling was almost half a cent up at $1.17.

This Fed meeting was the first with new Trump appointee Stephen Miran on the voting panel.

He was chairman of the president’s Council of Economic Advisers before being handed the role this week.

His was a sole voice in the voting for a half percentage point cut. It is clear, though the identity of participants’ forecasts are not revealed, he was the lone voice in calling for a further five quarter point reductions this year.

Mr Trump has sought to fire a member of the Fed’s board, Lisa Cook, to bolster his position further but that decision is currently subject to a legal challenge.

MSPs have voted to abolish Scotland’s controversial not proven verdict.

The Scottish government’s flagship Victims, Witnesses and Justice Reform (Scotland) Bill was passed on Wednesday following a lengthy debate of more than 160 amendments that began the day before.

The new legislation makes a series of changes to the justice system, including scrapping the not proven verdict; establishing a specialist sexual offences court; creating a victims and witnesses commissioner; reforming the jury process to require a two-thirds majority for conviction; and implementing Suzanne’s Law which will require the parole board to take into account if a killer continues to refuse to reveal where they hid their victim’s body.

Following Royal Assent, the legislation will be implemented in phases.

Justice Secretary Angela Constance said: “This historic legislation will put victims and witnesses at the heart of a modern and fair justice system.

“By changing culture, process and practice across the system, it will help to ensure victims are heard, supported, protected and treated with compassion, while the rights of the accused will continue to be safeguarded.

“This legislation, which builds on progress in recent years, has been shaped by the voices of victims, survivors, their families and support organisations, and it is testimony to their tireless efforts to campaign for further improvement.

“I am grateful to those who bravely shared their experiences to inform the development of this legislation and pave a better, more compassionate path for others.”

Victim Support Scotland (VSS) had earlier urged MSPs to put aside party politics and vote “for the intention of the bill”.

Kate Wallace, chief executive of VSS, believes the act is a “solid foundation” on which to build further improvements.

She added: “The passing of this act represents a momentous occasion for Scotland’s criminal justice system.

“It marks a significant step towards creating a system that considers and prioritises the needs of people impacted by crime.”

VSS worked with the families of Arlene Fraser and Suzanne Pilley to spearhead Suzanne’s Law.

Ms Fraser was murdered by estranged husband Nat Fraser in 1998, while Ms Pilley was killed by David Gilroy in 2010. To date, the women’s bodies have never been recovered.

Before the bill, parole board rules dictated that a killer’s refusal to disclose the information “may” be taken into account.

The new legislation means parole boards “must” take the refusal to cooperate into account.

Carol Gillies, sister of Ms Fraser, and Gail Fairgrieve, sister of Ms Pilley said: “We have done everything possible to make this change to parole in memory of Arlene and Suzanne, and for other people who have lost their lives in such a horrific way.

“For our families, the passing of this act and the change to parole are momentous.”

Read more from Sky News:
Why next year’s Scottish elections could get messy

The Scottish Conservatives and Scottish Labour voted against the bill.

Although in support of the abolition of the not proven verdict, the Scottish Tories said they had been left with no alternative but to oppose the bill after the SNP rejected a series of amendments.

The party had called for a Scotland-only grooming gangs inquiry; wanted victims to be told if a decision was taken not to prosecute an accused; and for all victims to be informed if a plea deal was struck between defence and prosecution lawyers.

They also wanted Suzanne’s Law to be strengthened, which would have compelled killers to reveal the location of their victim’s body or risk having their parole rejected – ensuring “no body, no release”.

MSP Liam Kerr, shadow justice secretary, said: “This half-baked bill sells the victims of crime desperately short.

“By ignoring many of the key demands of victims’ groups, the SNP have squandered the chance for a long overdue rebalancing of Scotland’s justice system.

“The Scottish Conservatives’ common sense amendments would have given this legislation real teeth but, by rejecting them, the nationalists have delivered a victims’ bill in name only.

“While we back the abolition of the not proven verdict, the SNP’s intransigence on a number of key issues meant we could not support this bill in its final form.”

MSPs have voted to abolish Scotland’s controversial not proven verdict.

The Scottish government’s flagship Victims, Witnesses and Justice Reform (Scotland) Bill was passed on Wednesday following a lengthy debate of more than 160 amendments that began the day before.

The new legislation makes a series of changes to the justice system, including scrapping the not proven verdict; establishing a specialist sexual offences court; creating a victims and witnesses commissioner; reforming the jury process to require a two-thirds majority for conviction; and implementing Suzanne’s Law which will require the parole board to take into account if a killer continues to refuse to reveal where they hid their victim’s body.

Following Royal Assent, the legislation will be implemented in phases.

Justice Secretary Angela Constance said: “This historic legislation will put victims and witnesses at the heart of a modern and fair justice system.

“By changing culture, process and practice across the system, it will help to ensure victims are heard, supported, protected and treated with compassion, while the rights of the accused will continue to be safeguarded.

“This legislation, which builds on progress in recent years, has been shaped by the voices of victims, survivors, their families and support organisations, and it is testimony to their tireless efforts to campaign for further improvement.

“I am grateful to those who bravely shared their experiences to inform the development of this legislation and pave a better, more compassionate path for others.”

Victim Support Scotland (VSS) had earlier urged MSPs to put aside party politics and vote “for the intention of the bill”.

Kate Wallace, chief executive of VSS, believes the act is a “solid foundation” on which to build further improvements.

She added: “The passing of this act represents a momentous occasion for Scotland’s criminal justice system.

“It marks a significant step towards creating a system that considers and prioritises the needs of people impacted by crime.”

VSS worked with the families of Arlene Fraser and Suzanne Pilley to spearhead Suzanne’s Law.

Ms Fraser was murdered by estranged husband Nat Fraser in 1998, while Ms Pilley was killed by David Gilroy in 2010. To date, the women’s bodies have never been recovered.

Before the bill, parole board rules dictated that a killer’s refusal to disclose the information “may” be taken into account.

The new legislation means parole boards “must” take the refusal to cooperate into account.

Carol Gillies, sister of Ms Fraser, and Gail Fairgrieve, sister of Ms Pilley said: “We have done everything possible to make this change to parole in memory of Arlene and Suzanne, and for other people who have lost their lives in such a horrific way.

“For our families, the passing of this act and the change to parole are momentous.”

Read more from Sky News:
Why next year’s Scottish elections could get messy

The Scottish Conservatives and Scottish Labour voted against the bill.

Although in support of the abolition of the not proven verdict, the Scottish Tories said they had been left with no alternative but to oppose the bill after the SNP rejected a series of amendments.

The party had called for a Scotland-only grooming gangs inquiry; wanted victims to be told if a decision was taken not to prosecute an accused; and for all victims to be informed if a plea deal was struck between defence and prosecution lawyers.

They also wanted Suzanne’s Law to be strengthened, which would have compelled killers to reveal the location of their victim’s body or risk having their parole rejected – ensuring “no body, no release”.

MSP Liam Kerr, shadow justice secretary, said: “This half-baked bill sells the victims of crime desperately short.

“By ignoring many of the key demands of victims’ groups, the SNP have squandered the chance for a long overdue rebalancing of Scotland’s justice system.

“The Scottish Conservatives’ common sense amendments would have given this legislation real teeth but, by rejecting them, the nationalists have delivered a victims’ bill in name only.

“While we back the abolition of the not proven verdict, the SNP’s intransigence on a number of key issues meant we could not support this bill in its final form.”