Though an interest rate hike announcement is unlikely, expect the Federal Reserve to "pave the way" for an increase Wednesday to soften potential market havoc down the road, a former Philadelphia Fed board member said Tuesday.
"One thing that Janet Yellen does not want is she doesn't want a big surprise. By paving the way, it won't spook the markets," said Ted Peters, CEO of Bluestone Financial Institutions Fund, in a CNBC "Closing Bell" interview.
The U.S. central bank's June policy meeting wraps up on Wednesday, with market watchers looking for hints of when the Fed will abandon its near-zero interest rate policy. Peters believes the Fed will hike rates in September and December for a total increase of 50 basis points.