New Century Advisors chief economist Claudia Sahm and Deutsche Bank's chief US economist Matthew Luzzetti sit down with Seana Smith and Madison Mills on the Morning Brief to discuss what the Federal Reserve's interest rate cut moves this week could signal about the broader economy.

Sahm is also a former Federal Reserve Board economist and the namesake of the Fed's Sahm Rule, a key recession indicator.

While recent economic data has sent positive signals that inflation is slowing, "some of the industry anecdotes suggest uncertainty" around what the Fed will do, Sahm tells Yahoo Finance. There's uncertainty around the rate cut itself, whether it will be a 25 or 50-basis-point cut, the potential for a recession, and the fact that it is an election year.

Amid some uncertainty, Luzzetti says that the "clearest evidence" the Fed has reached a major milestone in its inflation fight is "cutting rates this week." He adds, "There's a debate about 25 or 50 basis points, but they will cut rates."

When asked what is the most important thing for Fed Chair Jerome Powell to communicate on Wednesday, Setpember 18, Sahm believes "the rate cut will speak for itself." She adds, "I really think this is one where he's got to lead first with the actions and not try to talk the dovish talk."

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This post was written by Naomi Buchanan