If the Federal Reserve wants to juice the growth rate of the U.S. economy and send stocks higher, it should raise interest rates and start a normal process of tightening instead of dragging it out, closely watched strategist Jim Paulsen said Wednesday.
The minutes from the central bank's April meeting, released Wednesday, show the Fed will likely raise interest rates in June if economic data points to stronger second-quarter growth as well as firming inflation and employment.
"This Fed has suspended Wall Street at the first tightening move and has perpetuated the fear that has lasted at least two years," the chief investment strategist at Wells Capital Management said in an interview with CNBC's "Power Lunch."
While the central bank started the process of ending its quantitative easing program in 2014, it did not make its first rate hike until December 2015, he pointed out.
Paulsen said, "Then they paused again and it's like stretching out or perpetually keeping us in this pattern of fear.
"If they get away from that and start a regular rise in rates I think Wall Street will calm down like it has in the past and the market will start trading more on fundamentals and do far better."