Preheat the oven to 400 degrees F (200 degrees C).

Combine butter, cream cheese, and sugar in a large bowl and beat with an electric mixer until well combined. Add flour and mix until combined.

Roll dough into 1-inch balls and set on ungreased baking sheets.

Bake in the preheated oven until lightly browned on bottom, 10 to 13 minutes. Cool on the baking sheet for 1 minute before removing to a wire rack to cool, 8 to 10 minutes more. Place one pecan half on top of each cookie and dust lightly with powdered sugar.