Fed's Fischer: Markets should not be surprised by timing or pace of rate hikes

Federal Reserve moves to raise interest rates could lead to more market volatility, but overall the impact should be manageable, the Fed's vice chairman said on Tuesday.

Stanley Fischer, in prepared remarks, said markets should not be surprised by the timing or pace of rate hikes and that the Fed has prepared them for "what lies ahead."

Fischer also said most emerging markets were prepared for U.S. interest rates to rise.

The Fed has said it could raise rates as soon as June, though Fed funds futures currently price the first better-than-average chance of a rate hike in December.

Last week, Fed Chair Janet Yellen reiteratedthat the Fed was on track to raise rates this year.