The Fed Should Raise Rates, Former FDIC Chair Sheila Bair Tells CNBC

NEW YORK (TheStreet) -- The Federal Reserve needs to hike rates by 25 basis points at its next meeting from September 20 to 21, former Federal Deposit Insurance Corporation (FDIC) chair Sheila Bair said on CNBC's "Squawk Box" on Tuesday morning. 

The central bank needs to "raise [interest rates] gradually and slowly and get on with it," she said. 

The current low rates are inflating asset values, distorting valuation, distorting markets and penalizing savers and retirees.

"I've been criticizing this for years. I think it's gone on far too long. They need to get out. We need to get a normalized rate environment," Bair said. 

On Monday, Fed governor Lael Brainard gave a speech in which she cautioned against the central bank moving too quickly, CNBC's Joe Kernen noted. 

"There's never going to be a good time, and it just needs to get done. Twenty-five basis points is not huge," Bair argued. 

Earlier today Goldman Sachs cut the odds of the Fed raising interest rates at the meeting next week to 25% from 40%.