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Why Fed should raise rates: Dallas Fed prez

The U.S. Federal Reserve should raise its rates this year, the Dallas Fed president said.

"I would've liked to have seen us slowly raise rates," Richard Fisher told CNBC's "Power Lunch" on Thursday. "I was in favor of an early and slow approach."

Fisher made his remarks the same day that economist Larry Summers said the Fed should hold off on raising rates. "If you look at core inflation and you take out housing, there's really no price increases at all," Summers told CNBC's "Squawk on the Street" on Thursday. "There's no reason to tighten until we see the whites of inflation's eyes. I don't know when that moment will come; I'm not sure it won't come soon."

Read MoreShifting goal posts on employment may signal slower Fed rate hikes

"To me, that means run the risk of doing what the Fed has always done," Fisher said. "You get to full employment, you raise rates too rapidly and every time we've done that, we've driven the economy to a recession."

Nevertheless, Fisher said he expects rates to be raised this year. "The question is the timing, and that will be decided by other people in the committee," he said. "I wanted to start in March, but I lost that argument."