While Wall Street frets about a potential Fed rate hike next week, one prominent economist has a simple message for investors: Relax. Nothing is going to happen.
"I would say in light of a variety of different events, most notably the fragility and volatility in the global equity markets, the Fed is most likely to pass on September," Joe LaVorgna said Thursday on CNBC's "Futures Now." Wild price swings have plagued U.S. equities in the past several weeks, as the market has grappled with heightened volatility.
But rather than push the decision to raise rates for the first time in nearly a decade back to the end of the year, LaVorgna—who believes the Fed missed a prime opportunity to hike in the spring—said it could come sooner than most market watchers think.
"They are going to view [the next month] as a way to see what, if any, negative fallout that the recent market events have had on the broader economy," said Deutsche Bank's chief U.S. economist. "I think October is interesting as a possibility for a hike, as the Fed could very well raise rates next month if economic and financial conditions warrant action."