Duff: The Fed's messaging will matter more than a 25 or 50 basis point cut

The Federal Reserve is widely expected to cut interest rates by 25 basis points at its next meeting, but some analysts believe that the central bank's messaging will be more important than the size of the cut.

"The Fed's messaging will matter more than a 25 or 50 basis point cut," said David Rosenberg, chief economist and strategist at Gluskin Sheff. "The market is looking for the Fed to signal that it is willing to do whatever it takes to support the economy."

Rosenberg said that the Fed needs to be "very dovish" in its messaging in order to convince the market that it is serious about supporting the economy. He said that the Fed should signal that it is willing to cut rates further if necessary and that it will keep rates low for an extended period of time.

Other analysts agree that the Fed's messaging will be important. "The Fed needs to be very clear about its commitment to supporting the economy," said Diane Swonk, chief economist at Grant Thornton. "The market is looking for the Fed to be proactive, not reactive."

The Fed's next meeting is scheduled for January 28-29. The central bank is widely expected to cut interest rates by 25 basis points at the meeting, but some analysts believe that the Fed could cut rates by 50 basis points if the economic data continues to deteriorate.