The decision of the U.S. Federal Reserve to lower interest rates was not an easy one, its chairman Jerome Powell said, noting the competing tensions between inflation risks and a weakening jobs market.
"It's a close call. We have to make decisions," he told reporters after unveiling a third rate cut for this year.
A divided Federal Reserve lowered interest rates on Dec. 11 for a third consecutive time this year, but signaled that it could hold off further reductions in the coming months.
Powell said the central bank is "well positioned to wait and see how the economy evolves from here."
The reduction by a quarter percentage point brings rates to a range between 3.5 percent and 3.75 percent, the lowest in around three years, a move aligned with market expectations.
The Fed penciled in one more rate cut next year, and flagged heightened risks to employment as it announced its latest decision.
But a rift within the central bank deepened with three officials voting against the modest reduction.
