The Federal Reserve will probably raise interest rates this year, but dovish indications from the U.S. central bank have fueled uncertainty, Deutsche Bank's chief U.S. economist said Wednesday.
"My confidence has been wavering in light of recent Fed commentary and some of the data," said Joe LaVorgna in a CNBC "Power Lunch" interview.
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."
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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.