"Obama displayed a steadiness. Showed intellectual vigor. He has a definitive way of doing business that will do us well," Powell said.
Powell said he questioned Sen. John McCain's judgment in picking Gov. Sarah Palin as his running mate because he doesn't think she is ready to be president.
He also said he was disappointed with some of McCain's campaign tactics, such as bringing up Obama's ties to former 1960s radical Bill Ayers.
Following the interview, Powell told reporters outside NBC's Washington studio: "I think that Senator Obama brings a fresh set of eyes, fresh set of ideas to the table. I think that Senator McCain, as gifted as he is, is essentially going to execute the Republican agenda, the orthodoxy of the Republican agenda with a new face and a maverick approach to it, and he'd be quite good at it, but i think we need more than that."