A divided US Federal Reserve lowered interest rates Wednesday for a third consecutive time this year, flagging labor market concerns even as inflation remained elevated as President Donald Trump's tariffs bite.

But Fed Chair Jerome Powell signaled a higher bar for future reductions, saying the central bank is "well positioned to wait and see how the economy evolves from here."

He told a press briefing that officials are in a good position to determine the "extent and timing of additional adjustments based on the incoming data, the evolving outlook and the balance of risks."

Wednesday's cut by a quarter percentage point brings rates to a range between 3.50 percent and 3.75 percent, the lowest in around three years, a move aligned with market expectations.

The Fed penciled in one more ra

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