WATCH LIVE: Chair Jerome Powell explains the Fed's decision to make a big rate cut

The Federal Reserve may be “jumping the gun” by cutting interest rates by 50 basis points, said Nancy Tengler, CEO and chief investment officer of Laffer Tengler Investments.

The economy is slowing but still strong, he said.

“Unemployment may indeed rise but we don't see layoffs — JOLTs are still very large numbers, well above pre-pandemic levels,” Tengler said. “My criticism of the Fed has been a blind focus on backward-looking data. That's what it feels like. One weak employment report and here we are.”

— Michelle Fox

The Federal Open Market Committee's decision to cut the benchmark rate by 50 basis points was a mixed bag of public opinion.

According to the policy statement, Fed Governor Michelle Bowman favored a 25 basis point rate cut.

Bowman joined the Board of Governors in 2018. He said in July that additional rate hikes may be needed if inflation stalls.

– Jesse Pound

The Federal Reserve's updated policy statement said job gains had “slowed”, a change from earlier wording that they had “moderated”. However, the statement did not include any additional language about economic growth concerns.

On inflation, the statement now says “the Committee has gained greater confidence that inflation is sustainably moving towards 2 percent.”

See the full change of statement here.

– Jesse Pound

The S&P 500 and Dow Jones Industrial Average hit new records after the Federal Reserve's move to cut rates by 50 basis points.

At its high, the Dow jumped to 41,981.97, up more than 375 points. The S&P 500 jumped 0.98% to a new record high of 5,689.75.

The major averages gave back some of their gains shortly after as big cuts raised concerns about the economy.

– Darla Mercado

With the possibility of a Federal Reserve rate cut imminent, investors should make the most of this “golden age of fixed income” now, according to Rick Ryder, global chief investment officer of fixed income at BlackRock.

He believes a shift is coming to the market, where equities will do no better than “okay” and tech stocks will no longer enjoy their “fever pitch.” Instead, investors should buy yield “and just watch it do its job,” he said.

“This idea, 'Gosh, I can lock in three to five years — and you don't have to go into 30 years — I can lock in these yields for the next three to five years.' I think it's a pretty compelling proposition,” said Rieder, who manages the BlackRock Flexible Income ETF (BINC).

To find out where Reeder is investing now, read the full story here.

— Michelle Fox

Major averages hover near the flatline as the Federal Reserve's rate decision approaches. As of 1:39 pm ET, the S&P 500 And Nasdaq Composite Up about 0.1%. D Dow Jones Industrial Average climbed just shy of 28 points or 0.1%.

Treasury yields inched, with rates on 10 year note Trading at around 3.67%, reflecting a jump of around 4 basis points. D 2-year Treasury yield Added about 5 basis points to trade at 3.64%.

–Darla Mercado

The Federal Reserve's higher interest rate regime — from a current target of 5.25% to 5.5% — has rewarded investors who piled cash into money market funds and high-yield certificates of deposit, but that party is coming to an end.

Cash will come in higher yields after the Fed dials back rates, meaning investors should redeploy that money into bonds with slightly longer durations.

Intermediate-term bonds allow investors to lock in today's high yields while mitigating exposure to dramatic price swings tied to interest rates.

CNBC Pro subscribers can read the full story here.

–Darla Mercado

The Federal Reserve is expected to cut interest rates for the first time in four years on Wednesday, taking a look at how the stock market has performed at the start of previous easing cycles.

What the stock market has historically done after the first Fed rate cut largely depends on the economy, historical data shows. Overall, throughout the cycle, the S&P 500's performance after the first cut was largely positive but there were some major missteps during the recession.

CNBC Pro subscribers can read the full story here.

— Sarah Minn

There are a few high-dividend stocks — including several energy names like Exxon Mobil and ConocoPhillips — that investors can tap into as the Federal Reserve is expected to start cutting interest rates.

Lower rates should make yields more attractive for dividend stocks, lifting the group. These stocks can also be used as a reliable hedge against any economic downturn if central bankers are behind the curve on rate cuts.

Using the CNBC Pro Stock Screener tool, we searched for stocks with dividend yields above 3% and low debt-to-equity ratios below 60%. So they have bigger payouts and lower debt burdens, which means they should be able to continue paying that dividend. They are also poised to see upside of 10% or more, according to analysts.

Click here to view results and create your own screener in CNBC Pro's stock screener tool. Read the full story on CNBC Pro.

– Piya Singh

Many investors are betting that the Federal Reserve will be able to stave off a recession as it eases monetary policy from current levels.

Against this backdrop, CNBC Pro screened for stocks that did well when the Fed cut rates without a recession. Names of some who made the cut Nike, Amgen And United Health.

CNBC Pro subscribers can read the full list here.

– Fred Imbert

Traders are eagerly awaiting the Federal Reserve's rate decision — and the conclusion of the central bank's two-day meeting promises to be riveting.

The Fed is expected to cut rates for the first time since 2020, but markets are divided on whether policymakers will cut by 25 basis points or 50 basis points. One basis point is equal to one hundredth of one percent. Currently, the Fed's target range for rates sits at 5.25% to 5.50%.

Wall Street will also inquire about the Fed's “dot plot,” where policymakers share their expectations for rates over the next few years. At the conclusion of the meeting, central bank officials will also issue a summary of their economic projections, including forecasts for gross domestic product and inflation.

Read more from CNBC's Jeff Cox about what investors can expect from the Fed.

– Darla Mercado

The Federal Reserve is expected to make its first interest rate cut on Wednesday after more than two years of tight monetary policy. The central bank's target rate range currently sits at 5.25% to 5.50%.

Higher rates have been tough on borrowers, with the 30-year fixed mortgage rate rising to 6.12% in the week of September 13, according to Mortgage News Daily. That's up from 4.29% in the week of March 11, 2022, just before the Fed began its first hike.

Home equity loans have also become more expensive, with rates rising to 8.49% last week, from 5.96% in March 2022, according to Bankrate. Credit card interest rates have also jumped more than 400 basis points since the Fed began its rate hikes, rising 20.78% last week, Bankrate found. One basis point is equal to one hundredth of one percent.

But the Fed's tighter policy has provided a silver lining for savers. The annual percentage yield on five-year certificates of deposit jumped to 2.87%, up from 0.5% in March 2022, according to Haver. Yields on money market funds also jumped, sitting at 0.46% last week, versus 0.08% given just before the Fed began tightening policy in March 2022, Haver found.

– Darla Mercado, Nick Wells

In the hours leading up to the Federal Reserve's rate decision, investors remain divided over the rate at which policymakers will cut rates.

According to the CME FedWatch tool, Fed funds futures trading suggests a 55% chance that central bank officials will dial back rates by 50 basis points. They also imply a 45% chance of the Fed cutting rates by 25 basis points. Currently, the Fed's target rate range is 5.25% to 5.50%. One basis point is equal to one hundredth of one percent.

According to Aditya Bhav, senior US economist at Bank of America, investors need to see what they want The firm expects a 25 basis point cut on Wednesday, warning that a 50 basis point cut could ultimately be a worrisome sign.

“Risk assets may initially rally on the back of this dovish surprise,” Bhave wrote on Wednesday. “But we would caution investors that the 50bp cut means the Fed is less confident about a soft landing.”

– Darla Mercado