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Today is the day … All eyes are on the Fed as the FOMC enters day two of its September meeting. The markets have largely priced in a 25 bps cut ahead of today’s announcement, although some analysts say a 50 bps cut is on the table. The decision, coming at 2 p.m. ET, is set against the backdrop of a flurry of economic data:

Retail sales were up slightly month-over-month, according to the Commerce Department. Despite inflationary pressures and fears of recession, we’re still spending.CPI increased 0.2% in August putting the 12-month inflation rate at 2.5%, just above the Fed’s 2% target.On Tuesday, the S&P 500 closed slightly below its all-time high and is up 18% YTD.

What you need to know:

Whether the decision is 25 or 50 bps, this would be the first rate cut in nearly four years.Consumers should expect a reduced cost of borrowing, with things like mortgages becoming more affordable.Risk assets like stocks, that have been out of favor in a higher interest rate environment could become more attractive – that money market fund earning five percent and change today, could be earning a lot less tomorrow.A decision of 25 bps could foretell a soft landing, while a 50 bps move might suggest that the Fed is seeing something investors aren’t: worrisome economic data, slowing earnings growth, a weaker job market, etc.

You can stream the press conference on the Federal Reserve’s website.