An interest rate hike by the U.S. Federal Reserve should come in September, Richard Fisher, former president and chief executive of the Dallas Fed, told CNBC Tuesday.
"The markets, to me, have already discounted a first rate rise and (Fed Chair) Janet Yellen has made it very clear it's being considered and is on the table," he told CNBC Europe's "Squawk Box."
"I would personally expect that the odds are highest for September. You don't want to do something in December because that's when the markets are so thin and you could have a reaction that is perhaps more exaggerated."
Following the financial crisis, the Fed cut interest rates to record lows and implemented quantitative easing (QE) in an effort to stimulate growth in the U.S. economy. When the country's economy started to pick up last year, the Fed tapered off its monthly bond-buying program and now all eyes are on the first rate hike.