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Fisher: Stock selloff doesn't change Fed's rate hike timing

The recent stock market volatility that has sent U.S. stock indexes in and out of correction territory should not give the Federal Reserve pause as it prepares to hike interest rates, former Dallas Federal Reserve President Richard Fisher said Thursday.

The central bank could potentially raise rates for the first time in more than nine years when policymakers meet this month.

"I don't think it changes very much because our domestic economy is very strong," Fisher told CNBC's "Squawk Box." "I think people have come around to that."

Fisher said the U.S. economy continued to "chug along" despite severe stock market corrections in 1962 and 1987.

"I see no reason personally—setting aside my own views but looking at the real economic numbers—for hawks or doves or anybody in between to want to delay this beyond September or October," he said.

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Failing to raise interest rates would demonstrate to markets and other observers that the market is in control of the Fed, and not vice versa, he added.

Fisher also said the Fed shouldn't be put off by signs of economic weakness in China.

"Exports to China represent about 1 percent of GDP," he said. "We do benefit from the goods that are coming out of China being cheaper, and that's where we have a positive impact."

According to Fisher, markets overreacted to China's decision to allow its currency to trade on a freer basis. The yuan devaluation last month raised fears over growth prospects in the world's No. 2 economy and roiled markets around the world.

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