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Cashin: Look for dissents in the Fed decision

Market participants should look for dissents when the Federal Reserve announces its decision on interest rates Wednesday, UBS' Art Cashin said.

"Usually [Janet] Yellen likes to go for unanimity, but I think today dissents, particularly multiple dissents, could be helpful because it will tell the world 'we're in no real hurry,'" he told CNBC's "Squawk on the Street" Wednesday.

Dissents on the decision to could signal disagreement on the board and suggest a slower pace of subsequent hikes, said Cashin, director of NYSE floor operations for UBS.

Cashin said that voting Fed members could disagree with Yellen: Daniel Tarullo, Lael Brainard and Charles Evans.

Cashin does expect a Santa Claus rally toward the end of the year — barring any "particularly negative reaction in something like the emerging market currencies to the Fed move."

"Smells like stagflation?"

Jim Paulsen, chief investment strategist at Wells Capital Management, said he is concerned with stagflation in 2016 — the term used to described rising inflation with slow economic growth.

"The reason we'll tighten today is we're concerned that wage evidence is creeping up, and core consumer inflation is coming up," Paulsen said. "We have to tighten, not because real growth is good, but because we're concerned about nominal growth. That smells like stagflation, which is a very new and rough challenge for the financial markets."

Paulsen said that markets haven't seen stagflation for a long time, especially in this recovery. "If ask you me what the market is prepared for, I don't think it's prepared for that," he said.

The Fed is in a corner

Lindsey Piegza, chief economist at Stifel Nicolaus, said that if the Fed moves on Wednesday, it is doing so without having met either objective of its dual mandate on jobs growth and inflation.

"This time around the Fed is talking about an expectation of meeting that [2 percent inflation] target in the near term, or at least in the medium term, with no evidence in the data to support that is coming down the pipeline," she said. "The Fed backed themselves into a corner based on a promise to the market, not a data-dependent stance."

She said the rate increases over the next several months could negatively impact consumers in terms of higher financing costs for big-ticket purchases likes homes and autos.

"A near-term 50-basis-point increase in rates will trickle down to have a negative impact on the consumer against the backdrop of near nonexistent wage growth," she said. "Consumers are still under significant pressure at this point."