The Federal Reserve cut interest rates by a quarter of a percentage point on Wednesday for the third time this year, seeking to shore up a softening labor market even as inflation builds and leaving the prospect of more cuts next year unclear.

“It’s a labor market that seems to have significant downside risks,” Fed Chair Jerome H. Powell said at a news conference following the meeting.

Though Fed officials tentatively penciled in at least one more rate cut before the end of next year, estimates about where the economy is heading varied significantly and Powell suggested the central bank might wait before returning to any additional cuts.

“We are well positioned to wait and see how the economy evolves from here,” he said.

Wednesday’s widely expected move lowers the Fed’s benchmark rate

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