"The Fed is hostage to financial markets," Andrew Huszar, former Federal Reserve of New York official, said Monday on CNBC's "Closing Bell." "The Fed's job has historically been to monitor the markets, but it expanded its role into a lot of markets dramatically in a short period of time .. It's forced the fed to solicit a lot more input from market participants."
Though Huszar said he would be "shocked" by a rate hike on Thursday, he thinks rates should have been raised months ago.
"There is real debate within the Fed about the benefit to the economy," Huszar said. "The cheap funding is causing a lot of unproductive games in the markets.... The easy money policies really aren't making a meaningful enough impact for Main Street, compared to the costs."