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Power Play: What to expect from the Fed

Janet Yellen
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Janet Yellen

Stocks are lower on Tuesday, with the Dow, Nasdaq and S&P 500 down for a second straight session, as the market focused on the Fed's plan to raise interest rates this year.

Last week, Federal Reserve Chair Janet Yellen indicated the central bank will move cautiously on rates.

Edward Jones Investment Strategist Kate Warne tells CNBC's "Power Lunch" better economic indicators will keep the Fed poised to raise short-term rates slowly and steadily.

"We expect them to raise rates at least once later this year," Warne said.

Read MoreThe Fed 'is a god that has failed'

Jim Dunigan, chief investment officer of PNC Asset Management, also believes any move from the Fed will be gradual.

"Yellen's commentary was generally optimistic about the U.S. economy despite noting some mixed data points this year, while the global economy seems weaker than at year end. Markets interpreted her comments that policymakers should proceed cautiously in adjusting policy and with gradualism given current dynamics as a sign that another hike as soon as April is essentially off the table," Dunigan.

He points out that Fed fund futures are now pricing in a zero chance of a hike in April and are only pricing in one hike for the year.

The Dow, Nasdaq and S&P 500 are down during trading.