Former Federal Reserve governor Robert Heller says he "fervently hopes" the U.S. central bank will hit the "lift-off" button this week, outlining what he believes will be the trajectory for rate hikes in the world's largest economy.
"If everything stays benign as it is, we should be looking at increases at about every second meeting," Heller said on Wednesday. "So, 25 basis points four times a year," he said.
The comments follow remarks by former European Central Bank President Jean-Claude Trichet who told CNBC that the Fed should lift rates, in contrast to the advice given by the World Bank and the International Monetary Fund.
Heller, who served on the Board of Governors of the Federal Reserve System from 1986 to 1989, is confident the U.S. economy is well positioned to cope with a rise in interest rates from the current 0-0.25 percent.
"They (the Fed) are already lower than their unemployment target, they are very close to where they want to be on inflation, and overall we have price stability. That's what congress is asking them for. Why wait?
"Overall, around the world economy, if you forget about the refugee crisis, things are fairly calm. China is slowing down a little bit but there are no disasters in the world. Do it," he added.