The federal funds rate, which affects the cost of mortgages, will be hover between 1.5% and 1.75%.
"If that changes, the Fed will respond accordingly," Powell said.
Rate cuts during an economic expansion aren't common, but they aren't unprecedented either. The Fed is also the former Fed Chairman Alan Greenspan called "insurance cuts" in 1995 and 1998. The Fed quickly went back to rate hikes after those moves.
"We would need to see a really significant move up in inflation … before we would consider raising rates to address inflation concerns," he said.
Esther George and Fed President Eric Rosengren – Kansas City Fed President Esther George and Boston Fed President Eric Rosengren – a quarter of a percentage point.
Powell noted that there is a potential "phase one" trade deal between the United States and China and the UK.
"There's plenty of risk left, but I have to say the risks seem to have subsided," he said.
Fed officials next meet in six weeks. They left some room open for further rate cuts by omitting their statement, but left some room for deviation by pointing to "uncertainties" to the country's economic outlook.
"The committee will continue to monitor the implications of incoming information for the economic outlook as it evaluates the appropriate path of the target range for the federal funds rate," the statement read.
The Fed chairman has been under pressure all year by Trump to continue juicing the economy, which is already at historically low levels.
In the third quarter, the economy grew 1.9% according to the initial data released by the Commerce Department. Wall Street had been predicting, but still fell short of the Trump administration's forecast of hitting 3% economic growth annually. It was also the second back-to-back reading.
The US stock market moved higher Wednesday after the rate cut.
"The Fed is better than another log or two on the fire because of the economy. Chris Rupkey, chief financial economist at MUFG.