Expert: Now comes the hard part for the Fed

Raising rates was the easy part for the Federal Reserve, but now it's time for the central bank to do the heavy lifting, UBS strategist Mike Ryan said Friday.

"I think the hard part may be in terms of how the Fed has to signal going forward," Ryan told CNBC's "Squawk Box." "I think what the Fed needs to do is continue to emphasize that they are going to be conditional—that is they are going to respond to economic conditions—but they're not reactive to every economic data point."

The central bank raised rates by 0.25 percentage points on Wednesday, its first increase in 9½ years. Financial markets across the world initially interpreted the hike as a positive, with benchmark stock indexes surging, since the Fed said explicitly the path toward normalization would be gradual.

The Dow Jones industrial average gained over 200 points on Wednesday. A day later, however, the markets gave back much of the gains, with the Dow closing down by more than 250 points.

"Ultimately, what matters is where is this path going; where is this cycle going to end and when is it going to be at 1 percent or 2 percent or 3 percent," Jurrien Timmer, director of global macro at Fidelity Investments, told "Squawk Box."