Fed Chairman Jerome Powell could resign if he was "sufficiently threatened": Sri Kumar

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US Federal Reserve Chairman Jerome Powell holds a press conference following a meeting of the Federal Open Market Committee in Washington on December 19, 2018.

The last Fed rate hike in December had already involved two increases in 2019. However, in early January, Powell said the central bank would be "patient" in its approach to monetary policy. Then, in March, the federal open market committee proposed to stop raising rates this year.

Chicago Federal Reserve Chairman Charles Evans told CNBC on Monday that he would not be willing to leave interest rates until the fall of 2020 to contribute to sustainable inflation in the United States. United.

Sri-Kumar thinks the Fed loses credibility when it does not admit to having made a mistake, indicating Powell's "pivot" in January, just weeks after the central bank proposed two increases for 2019.

"Something is wrong," he says. "You can not expect to be credible under these circumstances."

In fact, he believes the Fed has responded by changing its policy this year. And this is not in his edict.

"The Fed's mandate is supposed to be employment and inflation."

Sri-Kumar argues that if the central bank puts its plan on hold to raise rates and then helps the market to rise, it creates a "moral hazard".

"It tells me that the Fed will provide me with a" powell put "and that I can continue to drive up the stock prices because, if there was a correction, it would support me."

However, Art Hogan, chief market strategist at National Securities, believes that the Fed's change of heart has a lot to do with global economic conditions.

"Remember what we felt for the world in December and what we think about it now, we are certainly in a different place," he told Power Lunch. "The Fed has done a good job in being very transparent, but it is clearly neutral."

While he sees no rate hike or reduction in the horizon, he thinks that this could change since the Fed depends on the data.

"If the data improves, and that's what the markets would like to see, they will probably have to raise their rates as soon as possible," Hogan said.

The Fed declined to comment on Sri-Kumar's remarks.