Stocks rise in Tuesday's session as markets lookahead to Wednesday's Federal Reserve decision around interest rates.

S&P Global Ratings Global chief economist Paul Gruenwald and Touchstone Investments global market strategist Crit Thomas sit down with Seana Smith and Madison Mills on Catalysts to discuss what to expect from the Fed policy meeting and what it could signal about subsequent rate cuts.

Gruenwald tells Yahoo Finance he expects a 25-basis-point cut: “The data has been supportive of kind of a soft landing... It's not just the amount [of the cut] tomorrow that is largely priced in any way. It's the path, how fast is the Fed going to go and how long.”

On the other hand, Thomas says a 25-basis-point cut “would be a little bit of a disappointment for the markets” since a 50-basis-point cut is already priced in. He adds that it “would be like a small bump. And then we'll just continue from there."

“If the Fed can pull this off, getting inflation from 8 or 9% down to 2% without a recession [and] minimal reduction in growth, that's pretty special, but that seems to be where we are right now as long as the labor market hangs in there, Gruenwald says.

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

This post was written by Naomi Buchanan.