The U.S. central bank's decision to cut interest rates by half a percentage point leaves open the risk of a resurgence in inflation, a former Kansas City Federal Reserve president said on Thursday. "They are gambling that they have inflation under control,

The Federal Reserve on Wednesday cut its benchmark interest rate by an unusually large half-point, a dramatic shift after more than two years of high rates that helped tame inflation but also made borrowing painfully expensive for American consumers.

Wednesday’s consumer-price index for August may end up being the deciding factor as to whether the Federal Reserve will deliver a bigger-than-usual, 50-basis-point rate cut on Sept. 18.

The U.S. central bank on Wednesday kicked off an anticipated series of interest rate cuts with a larger-than-usual half-percentage-point reduction that Federal Reserve Chair Jerome Powell said was meant to show policymakers' commitment to sustaining a low unemployment rate now that inflation has eased.

The Federal Reserve has cut its benchmark interest rate for the first time in more than four years, which will have consequences for mortgage rates, car loans and credit card debt. The Fed’s half-point rate cut is a major strategic shift and a sign policymakers believe they’re winning the war against inflation.

The Federal Reserve cut its benchmark interest rate by an unusually large half-point, a dramatic shift after more than two years of high rates that helped tame inflation but also made borrowing