United States Federal Reserve Chair Jerome Powell said on Wednesday that the decision to lower interest rates was a "close call," but ultimately, the committee felt it was the "right call."

He elaborated by noting that the labor market is beginning to ease, inflation is declining steadily, and even housing services are experiencing a decrease in inflation, all of which underpin the choice to reduce rates. "We don't think we need further cooling in the labor market to get inflation down to 2%. Downside risks to labor market have diminished but still cooling," he added.

He went on to say that the central bank perceives the current situation as "balanced" between the risks associated with increasing inflation and those linked to a softening labor market. "As long as jobs and inflation are solid, we can be cautious about cutting," he said.