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Power Play: Why the Fed may not hike rates in September

Janet Yellen
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Janet Yellen

Investors are expecting the Fed to raise interest rates in September, but one market veteran says there's a higher probability of a hike in December.

Scott Wren, senior global equity strategist at Wells Fargo Investment Institute, tells CNBC's "Power Lunch" on Tuesday the chances of a move in September is 30 percent.

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"If there is going to be a September hike the Fed should have started dropping hints weeks ago. The market, at this point is not prepped for a September hike. December is looking more likely, just a token hike at that time to get the normalization ball rolling," Wren said.

He believes there's little reason for the Fed to raise interest rates this year based on the economic data.

"The Fed is going to be very careful and take it very slow. The Fed does not want to make a mistake," Wren said.

The Fed is holding a two-day meeting on interest rates from September 16-17.