The Federal Reserve will still hike interest rates, even though inflation remains far below its 2 percent target, according to one strategist. 'When you look at personal consumption expenditures, that's up 1.2 percent over the past year,' said Scott Wren, senior global equity strategist at Wells Fargo Investment Institute. 'That may seem like it’s close to the Fed's target, but it is miles and miles away so I think they're going to make this initial rate increase when inflation is well below their target.' Wren thinks the Fed will announce a rate hike during its December meeting. 'I think we'll see the Fed being more clear, well in advance,' he said. As for sectors, he favors consumer discretionary, technology and industrials, as the economy continues to recover. He said investors are sitting on too much cash. TheStreet's Scott Gamm reports from New York.