Wall Street reacted with unease to Federal Reserve Chair Jerome Powell's remarks following a landmark decision to cut the federal funds rate by 50 basis points, bringing it down to a target range of 4.75% to 5%.

The Federal Reserve's highly anticipated dot plot, which outlines each policymaker's rate path preference, indicated that policymakers anticipate further easing ahead. The dot plot signaled that the Fed is likely to cut rates by a quarter percentage point at each of the next two decisions. Looking further ahead, it suggests an additional rate reduction of at least another percentage point in 2025.

Despite the...