Chip Somodevilla/Getty Images NewsListen below or on the go on Apple Podcasts and SpotifyFed cuts rates by 25 basis points with one dissent. (0:15) Dot plot pencils in two more cuts this year – barely. (1:11) Powell calls move ‘risk management.’ (1:42)The following is an abridged transcript:The Fed cuts and Powell herds the cats (or hawks and doves).The Federal Reserve cut interest rates for the first time this year, lowering the fed funds rate by 25 basis points to 4%-4.25%.And Fed Chairman Jay Powell showed he can still build a consensus, with 11 of 12 FOMC members voting for the quarter-point cut despite the drumbeat of a need for big rate cuts from the president and rising worries about the labor market.The one dissent was new interim board member Stephen Miran, who still holds position in the White House and voted for a cut of 50 basis points.The FOMC did acknowledged those job risks in its statement. The Fed said: “Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated."Economist Justin Wolfers says that “represents a sharp downgrade in the Fed's confidence about our economic condition” and that the “statement makes it official: Stagflation is in the room.”In the Summary of Economic Projections, or dot plot, the median forecast was for two more quarter-point cuts this year. But that was at the razor-thin margin of 10-9. One dot called for 150 basis points of cuts this year – presumably Miran, who was also presumably the big bull on GDP through 2028.The median dots also showed one cut in 2026 and one in 2027,But they also showed higher GDP and core PCE inflation for next year than they did in June and a lower unemployment rate.Allianz Advisor Mohamed El-Erian said: “No wonder some are calling this a divided and confused Fed about the longer-term outlook, with little conviction.”At his press conference Powell called today’s move a “risk-management cut,” which prompted swift selloff in stocks and bonds (although those moves didn’t fully hold). One strategist said that’s when “things got weird.”The Fed chief certainly seemed to be waving off the assumption that this is the first of a steady reduction in rates and Wells Fargo described his tone as “hawkish.”He said the Fed is in a “meeting-by-meeting situation” and given weak employment combined with high inflation there is no “risk-free path” for decisions. So, two cuts may not be “a slam dunk,” Wells Fargo said.Schwab strategist Kathy Jones said: “Powells comments emphasize the risk to the labor market as the reason to project cuts this year but clearly the Fed isn’t committed to steep cuts.”Looking to the markets, stocks saw the now-typical post-statement bounce, Powell Q&A retreat and a recovery into the close.The S&P 500 (SP500) seesawed and ended down -0.1%, while the Nasdaq Composite (COMP:IND) finished off -0.3%, and the Dow (DJI), which rose as much as +1.1%, closed up +0.6%.In Treasuries, the 10-year yield (US10Y) fell below 4% briefly but ended up 3 basis points to 4.07%, while the 2-year yield (US2Y) rose 4 basis points to 3.55%.Now for investors looking for what to do next, Steven Cress, the Head of Quantitative Strategies at Seeking Alpha, picked 6 stocks that would be Buys in the wake of a rate cut.They’re split between small-cap and dividend names. Among those highlighted are Alexander & Baldwin (ALEX), Heritage Insurance (HRTG) and Merck (MRK).