The Fed may 'just get it over with' by raising rates as much as 100 basis points at the next meeting and then hiking one more time, says market bull Ed Yardeni

At the next policy meeting, the Federal Reserve could raise benchmark rates by 100 basis points.

After the August consumer price index came in hotter than expected, the president and chief investment strategist of Yardeni Research suggested the Fed could frontload its rate hikes to tackle inflation more aggressively.

Yardeni told CNBC that he believed they were going to raise the interest rate significantly. I think they're going to get it over with 100 basis points instead of 75 basis points. Maybe another hike after that.

The meeting of Fed policymakers will end on Wednesday at 2 p.m.

Markets are pricing in an 80% chance that the central bank will raise rates again. The odds of a 100 basis point increase are not very high.

Inflation fell to 8.3% in August from 8.5% in July but is still well above the central bank's 2% target.

The Fed knows there is a long lag before rate increases have an effect on the economy, Yardeni said. He said that the Fed has a credibility problem when it comes to fighting inflation and is trying to get ahead of it with large rate hikes.

An increase of 100 basis points would bring the fed funds rate up to 3 percent.

"They're trying to catch up with the 2-year Treasury note which is saying that within the next 12 months, or a lot less, we'll be at something like 3.8%."