The Federal Reserve is expected to cut its influential fed funds rate in its September meeting. But economists and market watchers are waiting to know by how much.

The market is celebrating the Fed's 50 basis point rate cut. Read why the potential benefits of the cut are already priced in.

On Wednesday, Fed Chair Jerome Powell announced that the central bank would begin cutting Fed interest rates, starting with a .50 percentage point (50 bps) cut this month. The Fed also signaled that additional cuts were likely in their final two meetings this year in November and December, and more next year.