As a litany of economic data rolls out, more eyes are fixed on the Federal Reserve and its next policy decision. The first interest rate decision from the Fed will be on Wednesday at 2 P.M., which could potentially cause a shake-up in the markets.

Rick Rieder, BlackRock CIO of Global Fixed Income, joins Yahoo Finance to discuss what the most likely policy decision from the Fed will be and how it can affect the broader markets.

"March is aggressive because you have time, in an economy that's operating this well, there's not really a race to move rates down of any significance," Reider says. "When you start going, I think they're going to start going in May and will do 25 basis point cuts every other meeting, but by the way, let's say the data does turn down. You can do 50s. You were hiking at 75s. So I think they've got a bit of time, and I think it's going to walk that back a bit, some of the overzealousness that you've seen certainly in December."

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

Editor's note: This article was written by Nicholas Jacobino

Video Transcript

JULIE HYMAN: Federal Reserve, of course, is set to meet this week. Investors are going to be looking out for signs that the fight against inflation is over and that interest rates will be cut sometime this year. Rick Rieder's joining us. BlackRock chief investment officer of Global Fixed Income. Rick, it's great to see you. I want to start--

RICK RIEDER: You too.

JULIE HYMAN: I want to start here, Rick, has the Fed succeeded? I mean, you look at the GDP print we just got. You look at the PCE reading we just got. You look at consumer confidence, it's looking pretty good. What do you think?

RICK RIEDER: So either it's because of the Fed succeeded or the economy succeeded. It is-- listen, I think we're seeing an economy that is much more vibrant, much more resilient than people give credit to. I mean, for a year and a half, people are saying the recession is coming. I heard somebody say hard landings start with soft landings. I don't even understand.

I mean, you look at the-- there was a lot of wisdom. The claims data, the retail sales data, the GDP data, the payroll data, economy's in good shape. It's a service-oriented economy. Service-oriented economies always talked about on your show the last few times. They don't really go into recessions and you're seeing some real vibrancy and the payroll report, like you were saying at the outset.

You know, listen, you can never pick one payroll report in terms of what it does. I'm going to be focused on some things like leisure and hospitality because that's a big cyclical and what happens with regard to that-- temporary hiring. So are you starting to see an economy that's maybe slow. The cyclical components slowing a bit. That's going to be worth watching. But, gosh, it's hard to complain about a tech-oriented US economy, a service-oriented economy that can take a lot of shots.