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The Federal Reserve reduced interest rates by a quarter of a percentage point,

the first cut this year to a target of 4 to 4.25% as America's labour market has softened.

For months, policymakers at America's central bank have faced pressure from Donald Trump to lower rates.

Stephen Myron, a White House economic advisor, whom Mr. Trump recently installed on the Fed's board,

voted to cut rates by a half point.

At a banquet with King Charles III at Windsor Castle, Mr. Trump hailed the British-American relationship,

saying, quote, special does not begin to do it justice. He said that his unprecedented second

state visit was one of his life's highest honours. Earlier, the countries agreed to a $42 billion

deal through which American tech companies will invest in British artificial intelligence and nuclear infrastructure.

The European Commission announced a proposal to suspend its free trade agreement with Israel.

European officials said they would also impose sanctions on extremist government ministers and violent settlers. They also announced sanctions on

ten Hamas leaders. Member states, such as Germany, may veto the proposals. Ursula von der Leyen,

the commission's president, called for an end to the, quote, horrific events in Gaza.

Britain's annual inflation rate was 3.8% in August, the same as in July. The figure is

well above the Bank of England's target of 2%. The core rate, which excludes food and energy

...