The rising prospects of a June rate hike have investors overly concerned about the Federal Reserve, Karyn Cavanaugh, senior market strategist at Voya Investment Management, said Tuesday.
"I think people are thinking too much about the Fed and trying to read the tea leaves. The Fed is not the wizard of Oz," she told CNBC's "Squawk Box." "I think the Fed wants to raise interest rates" but it probably won't in June.
Market expectations for a June rate hike are now 30 percent, according to the CME Group's FedWatch tool. The sentiment rose after the release last week of the minutes of the Fed's April meeting in which policymakers said a June rate hike was likely if economic data pointed to stronger second-quarter growth and firming inflation and employment.
"We've seen this game before; we saw it last September, the market was ready and they didn't raise rates," Cavanaugh said.
Investors in U.S. stocks have been trying to position themselves for a possible hike, with the three major indexes falling more than 2 percent over the past month.