A divided US Federal Reserve lowered interest rates Wednesday for a third consecutive time this year, but signaled that it could hold off further reductions in the coming months.

Fed Chair Jerome Powell said the central bank is "well positioned to wait and see how the economy evolves from here."

The Fed's statement on its decision also brought back language used in late-2024 to signal a pause in more rate cuts.

Powell stressed 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 reduction 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.

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