LaVorgna: 60% chance of September hike on strong jobs report

Deutsche Bank Chief U.S. Economist Joseph LaVorgna said on Wednesday that the chances the Federal Reserve will raise interest rates in September could be 60 percent if there is a strong jobs report Friday.

The Deustche Bank economist told CNBC's "Power Lunch" that the market is right about Fed rate hike chances.

"It's about 35 percent for September," he said. "If you get a strong report on Friday, those probabilities will rise maybe to 60 percent."

He later added, that the Fed will be on the cautious side and probably skip September.

LaVorgna views contrast with those of Allianz's Mohamed El-Erian, who on Tuesday said he sees an 80 percent chance the Fed will raise interest rates in September if the jobs report is strong. Other economists agreed, saying he makes a good point.

Market expectations are for non-farm payroll growth of about 180,000 this month.

The Fed hasn't raised interest rates since December, when it raised it by a quarter of a percent. But the Fed has indicated that it will raise interest rates at least once this year.

ADP and Moody's Analytics released a report Wednesday that said private companies added 177,000 positions for the month of August. That's above Wall Street's estimates for 175,000.