'Suck It Up and Deal With It': Fed's Fisher Warns Next Rate Hike Will Cause Correction

The central bank's next interest rate hike will surely cause market pain, but the Federal Reserve should just get it over with as soon as possible, former Dallas Fed President Richard Fisher said Wednesday.

"I would be prepared when they move — and I hope they move some time in June — there'll be a settling in of the market place. There will be a correction. Suck it up. Deal with it. That's reality," he told CNBC.

Fisher said the Fed has been unwilling to tighten monetary policy because it fears the potential resulting market volatility and economic weakness.

"The Fed has the markets on Ritalin, trying to keep the mood very smooth, keep volatility down as much as possible. As soon as they hint that they might remove that, then they create the problems that they're afraid of," he said.

The real economy is doing much better since the Fed's last meeting in March, Fisher said, noting that Argentina has returned to international bond markets, Chinese data looks better and demand for British bonds is strong.

"These are very robust markets. I would take advantage of that right now," he said.

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