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The Fed is 'behind the curve,' says BlackRock's Fink

The Federal Reserve has been incredibly slow in responding to changing economic conditions in the United States and shouldn't wait to raise interest rates, the head of the world's biggest money manager told CNBC on Wednesday.

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A rate hike would strengthen the U.S. dollar and boost world economies, BlackRock Chairman and CEO Laurence Fink said on "Squawk Box."

"They're behind the curve, but they have a systematic approach. They finished bond purchasing this month and I think they will be on a path, ultimately, to normalized rates," said Fink, who has led BlackRock through its entire two-decade history and has more than 30 years of investment experience.

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Of course, what constitutes "normalized" rates could very well change with the economic conditions.

Janet Yellen, chair of the U.S. Federal Reserve.
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Janet Yellen, chair of the U.S. Federal Reserve.

"What is normalized rates in a slow world may be different than the forward curve," he said. "So the forward curve—you know, we're talking about 2, 3 percent—and it could be, you know, maybe they're only going to raise rates, you know, up to 1, 1.25 percent."

Even if the global economy slows down, though, Fink said it's unlikely the Fed will embark on more quantitative easing, its outgoing policy of bond-buying and low interest rates.

"We need higher, short-term rates, but we don't need them too high. Just the symbolism of raising rates incrementally to 1, 1.25 [percent], I think would serve the purpose," he said. "I don't believe it would slow down the economy of the United States if we had rates there."