Art Cashin says U.S. economic data is weak and doesn't see the Federal Reserve raising rates again this year.

Cashin told CNBC that he's impressed with European markets despite ECB President Mario Draghi's deflation comment.

"What I'm seeing in the market in Europe is impressive even with Draghi trying to back down from his point that inflation is no longer a threat by saying he has to keep the easing in place," Cashin, UBS' director of floor operations at the New York Stock Exchange, told CNBC.

Cashin was referring to comments by European Central Bank President Mario Draghi atthe ECB forum in Sintra, Portugal, on Tuesday, speaking on strengthening and broadening recovery in the euro zone, CNBC explained.

"The threat of deflation is gone and reflationary forces are at play," sending European bond yields higher and dragging their U.S. counterparts with them.

To be sure, other respected economic gurus have doubted additional rate hikes.

With inflation low and wages showing little sign of an upward surge, the U.S. Federal Reserve should not be raising interest rates, Minneapolis Fed President Neel Kashkari said earlier this week.

"What's the rush?" Kashkari asked at an event at Michigan Technological University in Houghton, Michigan, adding that neither wage nor inflation data is giving any sign that the economy is about to overheat and indeed may suggest that there is still some slack in the labor market, Reuters reported.

The Fed raised rates twice this year, including earlier this month, and Kashkari dissented both times.

He disagrees with Fed Chair Janet Yellen, who sees unemployment at a 16-year low and projects inflation will necessarily move toward the Fed's 2 percent target. Yellen says the Fed needs to keep raising rates to prevent inflation from overshooting.

• Weak Inflation Erodes Conviction at Fed on Rate Hikes
• Fed's Kashkari: 'What's the Rush' on Interest Rate Hikes
• Fed Raises Rates, Maintains Forecast for One More Hike