The market is expecting a rate hike in December, but it may not take one well if the economy doesn't experience significant growth, Fidelity Investment macro expert Jurrien Timmer said Wednesday.
"The market, I think, keeps telling the Fed, 'Wait 'til we have growth, and then you can raise all you want,' because then the market can handle it. But at zero or negative growth, it can't," Timmer told told CNBC's "Squawk Box."
Timmer said that so far, third-quarter earnings have resembled a "very typical, consistent seasonal pattern" of companies under-promising, then over-delivering on their earnings.
But, after five quarters of negative growth with sequential improvement, Timmer said U.S. markets may see their first positive quarter.
"The transmission mechanism for the last problems when the Fed raised rates last December … was that the Chinese yuan was overvalued, then that went down, you had the whole capital flight thing and tightening of financial conditions," Timmer said.
"This time, the yuan has already devalued, so that's sort of out of the way, so I think the market can actually handle it," he said of a Fed rate hike.