Federal Reserve chief Jerome Powell (Photo: Susan Walsh/Reuters)The Federal Reserve lowered interest rates by a quarter percentage point Wednesday and signaled two additional cuts before year-end, seeking to shore up a slowing labor market even as inflation remains elevated. Fed Chair Jerome Powell warned that the labor market has softened considerably. "The marked slowing in both the supply of and demand for workers is unusual in this less dynamic and somewhat softer labor market," Powell said at a press conference. "We think it would take a significant upside surprise in inflation or labor market rebound to take the Fed off its current easing trajectory." Inflation remains sticky, with the Consumer Price Index up 2.9% in August from a year earlier, compared with 2.7% in July.