The US labor market is strong and inflation is likely to return to the Fed's 2 percent annual goal, he added. The spike pushed the rate above their preferred range.
"It is a very divided group, " said Carl Tannenbaum, chief economist with Northern Trust Corp.in Chicago. "It is not a sure thing they will do more".
Kansas City Fed President Esther George and Boston Fed President Eric Rosengren called for no rate cut, and St Louis Fed President James Bullard wanted a bigger half-point rate cut.
New projections showed Fed policymakers at the median expected rates to stay within the new range through next year.
Trump selects Robert O'Brien to be his next national security adviser
O'Brien is now the USA special presidential envoy for hostage affairs in the State Department. "He will do a great job", he said. His hostage role had been overseen by Mike Pompeo, the USA secretary of state, whose power within the administration is growing.
In its policy statement accompanying its rate cut, the Fed failed to indicate whether more rate cuts were likely this year, though it did leave the door open for additional rate cuts if the economy weakens. "I see high value in sustaining the expansion" in that the longer it runs, the more people that benefit from it.
Just previous year, the Fed was tapping on the economy's brakes.
Volatility in oil prices after attacks on key Saudi Arabian facilities over the weekend reinforces the growing risks in the global economy, though the FOMC may be reluctant to adjust views to fast-changing events. Recent data have supported its forecasts for more than 2% economic growth this year, and some reports have surprised to the upside.
An index of manufacturing activity for August reflected contraction for the first time since 2016.
Attack on Saudi facilities sets oil on fire in India
Saudi Arabia's King Salman visited Beijing in 2017, and Saudi Crown Prince Mohammed bin Salman came to China earlier this year. Riyadh pumps some 9.9 million barrels per day (bpd) of which around 7.0 million bpd are exported, mostly to Asian markets.
Powell said the Fed would be closely monitoring the level of reserves in the system.
"They have been using boilerplate language "solid" in describing the labor market, but that's becoming harder to support and could be downgraded", said Neil Dutta, head of USA economics at Renaissance Macro Research.
The Fed is trying to combat threats to the US economy, including uncertainties caused by President Donald Trump's trade war with China, slower global growth and a slump in American manufacturing.
Within the interview broadcast Thursday, Trump did sustain his criticism of Powell and the Fed, saying they raised rates of interest too shortly final yr and have been reducing charges too slowly this yr.
Saudi Arabia says weapons prove Iran's guilt over oil attacks
Iran denies any connection to the attacks on tankers. "The Saudis were the nation that was attacked", he said. They condemned the attacks and discussed the need for a united diplomatic response from global partners.
The central bank also widened the gap between the interest it pays banks on excess reserves and the top of its policy rate range, a step taken to smooth out problems in money markets that prompted a market intervention by the New York Fed this week. "It is certainly possible that we will need to resume the organic growth of the balance sheet earlier than we thought", he said.