Analysts: Powell's remarks have a short-term impact on the stock market

Michael Rosen, chief investment officer at Angeles Investments, said the rate cut was in line with market expectations, but Mr. Powell's comments undermined optimism about another cut in December. Mr. Powell's comments reflect tensions within the Fed over whether to cut rates further, especially as inflation remains high and above the Fed's own target. Investors should expect inflation to remain high for an extended period of time, which will limit the extent of further monetary easing. Stocks retreated as investors had expected a boost from more rate cuts. But this was only a temporary reaction. Ultimately, it is still corporate earnings that drive the stock market, and earnings performance remains strong, so we remain full in our portfolios.