Market watchers have pointed to September or later this year as a possible liftoff date from near-zero interest rates. LaVorgna believes the Fed will "at most go twice this year, maybe less."
Read MoreGDP data provide few Fed clues
He pointed to the central bank's muted enthusiasm after its June policy meeting, when it said economic activity was "expanding moderately." He also contended that a first-quarter GDP contraction and less-than-stellar growth prospects for the year have tempered expectations.
"The markets are very complacent," he said, adding Treasury yields have likely hit a bottom in the near term.
Investors have braced for possible volatility when the Fed moves on interest rates. LaVorgna expects that "broader markets will see turbulence" when rates move.
Read MoreFed's Powell: Up to 2 rate hikes possible this year