Federal Reserve

China puts Fed in 'awkward' spot: Ex-Fed's Fisher

Richard Fisher on rate hike: Much ado about nothing

China's currency devaluation this week should not be used by the Federal Reserve to delay raising U.S. interest rates, former Dallas Fed President Richard Fisher said Friday.

"I think this would put [the Fed] in an awkward spot to use this as an excuse," he told CNBC. "Hyper doves may use this as an excuse. But I don't think it obtains."

The stronger dollar against currencies around the world is a consideration for central bank policymakers deciding whether to hike rates for the first time in nine years, Fisher acknowledged. "[But] it doesn't stop the economy," which in the U.S. has saw some "pretty good numbers" recently, he said on "Squawk Box." When he was with the Fed, Fisher was a hawk on rate hikes.

The yuan rebounded a bit Friday after dropping three sessions in a row since Tuesday's historic devaluation. The yuan has fallen 3 percent against the dollar in the past four days.

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But Fisher said that drop is nothing compared to the declines of 18 to 20 percent for the currencies of America's two biggest trading partners, Canada and Mexico.

"We have a strong dollar, period. That's the way it is," he said—arguing the China concerns are "much ado about nothing."

The devaluation was seen as an omission by the Chinese that their economy is slowing down. But Fisher said that's not a surprise.

He also lamented, "We push the Chinese to become more market orientated. They take a slight step in that direction," and critics say there they go again, "depreciating against the dollar."

Against the China backdrop, Fisher did talk about the challenges of not raising U.S. interest rates at the Fed's meeting next month. An October hike would be odd because there's no news conference by Fed Chair Janet Yellen scheduled after that meeting, he said—adding the December meeting does have a news conference but the "markets are thin."