The Federal Reserve's highly anticipated decision on interest rate cuts is set to come Wednesday, leaving investors on the edge of their seats. Manulife Investment Management Chief Investment Officer and Senior Portfolio Manager Nathan Thooft joins Market Domination Overtime to share his outlook on the Fed's impending move.

Thooft highlights that the dot plot, which represents the Fed officials' projections for future rate movements, will be "the important news" to watch. He explains that for the Fed to lower the dot plot expectations of rate cuts, there needs to be an economic environment that suggests "either growth is gonna be a bit higher or inflation is gonna be a bit higher, or both." With those conditions not met, Thooft notes that this "could be a fairly boring meeting."

"They [the Fed] actually have a lot of flexibility to do quite a few cuts before they actually become restrictive. So we actually think the market is underpricing the cutting potential over the next 18 months," Thooft tells Yahoo Finance.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Angel Smith