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Power Play: Why the Fed may delay rate hike

Federal Reserve Board Chair Janet Yellen.
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Federal Reserve Board Chair Janet Yellen.

Fed Chair Janet Yellen may have said interest rates are on track to rise this year if the economy improves, but there are still doubts liftoff will happen in September.

Matthew Roddy, vice president and portfolio manager at Rockland Trust Investment Group, tells CNBC's"Power Lunch" on Wednesday the Fed will probably not raise rates in September.

He compares the rate hike dilemma to standing on a ladder.

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"Climbing the ladder I was never nervous, but once I looked down the trepidation and the sense of danger took hold. That is when I thought this is what the Fed must feel like sitting on all that treasury and agency debt. Consequently I suspect the Fed will act much the same way I did. I did not act in haste and rush down the ladder, rather once I felt confident I had completed the job, I slowly traversed down cautiously and deliberately," Roddy said.

He believes one quarter of economic growth after a contraction in Q1 is not enough to force the Fed to move on rates.

"There is no doubt the jobs report last week was good, and the JOLTS report this week confirmed some of that strength, but the sheer number of openings does illustrate the skills gap we are facing for our work force. They will need to develop the skills to create the wage growth required for a sustainable recovery. That does not happen overnight," Roddy said.