Power Play: Fed rate hike may not happen until next year

Janet Yellen
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Janet Yellen

Wall Street breathing a sigh of relief after Fed Chair Janet Yellen said interest rates are still on track for liftoff this year, but tightening will be at a gradual pace.

But Paul Dietrich, CEO and CIO of Fairfax Global Markets, tells CNBC's "Power Lunch" on Monday, the Fed will likely push off a rate hike.

Read MoreFed won't hike rates because they're too scared: Economist

"Because of the strong dollar and the drop in oil prices, I do not believe the Fed will raise rates until late this year or even early 2016," Dietrich said.

He believes the Fed is watching what's happening around the globe very closely.

"Europe still has systemic problems and the Fed doesn't want to do anything to derail their progress. If the Fed raises rates, while other central banks are easing, there will be a world-wide flood of money out of those countries to America. This would offset the effectiveness of those other central bank strategies," Dietrich said.