NEW YORK (TheStreet) -- The Federal Reserve has a slim chance of raising interest rates at its meeting next week on September 20 and 21, Wells Capital Management Chief Investment Strategist James Paulsen said on CNBC's "Squawk on the Street" on Friday morning.
"It doesn't look very likely that they're gong to do it next week," he said.
In his opinion, the Fed should be raising rates, Paulsen added. "I'd love to see them go ahead and do it and to suggest here that they're confident they can do this. That the economy's okay," he explained.
The final vote between the members who support a rate hike and those who don't will be interesting to see, he added. "It looks like, at a minimum, there's going to be at least a good deal of dissension, I think, on the board," Paulsen said.
But unfortunately, without a rate hike, investors will again be left in the "fog" of wondering whether the Fed will raise rates later this year at its December meeting instead, he said
The current bond market may help pressure the Fed toward a rate hike, he noted.
"But I do think that the bond market is taking over rates here in a way that hadn't happened earlier where you've got long-term bond vigilantes kind of leading the Fed again for the first time. Not only here, but globally. And that is going to bring more and more pressure for the Fed to start raising rates," Paulsen said.