In a power source of a welding system, an inverter rectifier output circuit and method for reducing the blocking voltages across saturable reactors associated with a rectifier coupled to a transformer winding in the inverter rectifier output circuit during both turn-on and turn-off transitions of the rectifier. At least a portion of a reverse recovery current associated with the rectifier is blocked by allowing blocking voltages to build across associated saturable reactors during a transition phase of the rectifier. During a turn-off portion of the transition phase, the blocking voltages are reduced using a RC circuit, thereby suppressing a peak voltage associated with the rectifier. During a turn-on portion of the transition phase, the blocking voltages are reduced using another saturable reactor in series with a free-wheeling diode.