San Francisco Federal Reserve Bank President Mary Daly on Friday said the decision by the U.S. central bank to lower interest rates on Wednesday by another quarter percentage point was a "close call," adding she agreed with Chair Jerome Powell that caution is now warranted toward further policy adjustments.

The Fed's December rate decision reflects growing confidence in the economy's trajectory and the continued moderation of inflation pressures, despite an uptick in the inflation rate over the last few months.

In remarks at a postmeeting press conference on Wednesday, Fed Chair Jerome Powell said that policymakers are now equally attuned to risks from both sides of the mandate, and would proceed cautiously with future rate cuts to avoid reigniting rapid inflation.