In an interview with CNBC, Richard Clarida, the Federal Reserve Board of Governors Vice-Chair, explained that the Fed's rate cut this week was an insurance against the downside risk to the outlook.

"The US economy is in a good place but there are some risks," Clarida added. "The FOMC will take decisions meeting by meeting."

The US Dollar Index seems to be pushing higher on Clarida's comments. As of writing, the index was up 0.22% on the day at 98.58. Below are some additional takeaways, per Reuters.

"The center of gravity at the fed is that this week's rate cut was appropriate."

"The FOMC does not see elevated financial risks in the economy."

"The Fed will be very attentive to data, risks to the outlook in future decisions."

"There is clearly a slowing global economy. Global growth is getting worse"