Central bankers are slated to announce Wednesday afternoon whether the economy is ready for an increase in the federal funds target rate, used as a benchmark for interest on everything from car loans to Treasurys.
Scott Mather, chief investment officer of U.S. Core Strategies at Pimco, said the Fed has been continually too optimistic about the U.S. and global economy, calling their credibility into question. Mather told CNBC's "Fast Money: Halftime Report" it's time for central banks to push back on the idea that they can control the whole economy.
"Each central bank action is becoming less and less impactful, it seems, on the real economy, and less impactful, in many ways, on financial markets as well," Mather said. "Monetary policy, at this point, might be doing more harm than good, and it's more important to move back to a more normal set of interest rates."