The stabbing at a rabbi's house in New York state was “domestic terrorism”, state governor Andrew Cuomo says.
Hatred based on race, colour and creed was an “American cancer spreading in the body politic”, the governor told a news conference.
He called for a domestic terrorism law in the state to prosecute such crimes.
At least five people were stabbed in the attack in Monsey, north of the city of New York. The attacker was later arrested in New York's Harlem area.
Witnesses said the attacker burst into the house, which was hosting a Hanukkah celebration, pulled out a large knife and began attacking people.
Guests reportedly threw tables and chairs at the man, who then attempted to enter a synagogue next door before fleeing in a car.
However his vehicle registration was passed to police and license plate scanners picked up the car as it entered New York City, where he was detained.
Police have named him as Grafton Thomas, 37, of Greenwood Lake, New York.
What did Governor Cuomo say?
He described the attack as “very disturbing” but said it was not an isolated incident, adding that hostility based on race, religion and immigration status was spreading across the country.
“It is domestic terrorism. These are people who intend to create mass harm, mass violence, and generate fear based on race, colour, creed. That is the definition of terrorism,” he said.