The Fed is no longer "the only game in town" anymore when it comes to economic stimulus, since the prospects of a break in D.C. gridlock may finally open the door for a rate hike, analyst Jack Caffrey said Thursday.
"What has the Fed been asking for for years, in every bit of testimony? 'We'd actually like some fiscal stimulus,'" Caffrey told CNBC. "And I think that's what to some extent changed, at least in terms of the market's perception coming out of the election. We might get a stimulus bill, we might actually get tax cuts."
Caffrey, a portfolio manager at JPMorgan Private Bank, told "Squawk Box" that the incoming Republican administration's economic proposals look promising for short-term productivity, but do not address how to maintain it.
"We'd like to see some fixed investments and capital spending, which generally get you longer term and more sustainable productivity, which gets you, hopefully, the earnings growth that drives markets," he said.
In any case, the months before the Trump administration steps in are largely a professional guessing game in many ways, Caffrey said.
"To some extent, we're trying to handicap which way policy goes, trying to handicap which way markets will respond, in which case … we're making a whole series of conditional probabilities based on what we think may happen or may not happen," he said.
In a separate interview on CNBC's "Worldwide Exchange," strategist Bob Doll echoed concerns about uncertainty under the new administration.
"Did we elect Donald Trump the tax-cutter and the pro-growth president or did we elect Donald Trump the protectionist with some tariffs, which is a tax increase?" said Doll, a chief equity strategist with Nuveen Asset Management.
Doll said Thursday he thought the country will see more of the former than the latter, calling the post-election stock market rally an "amazing" reaction. Banks must be breathing a sigh of relief in response to Trump's policies targeting federal bank regulations, he said.
"It looks like we've got a shot, not a given, but a shot, at more growth and more inflation, more nominal GDP, and that's a beautiful thing for the banks, the shape of the yield curve," Doll said.
And while the financial stocks' boom may subside in the coming months, Doll still considered them attractive prospects.
"Did they get overdone on upside? Absolutely, they may fall back some more, but think you have to like banks generally more today than you did two weeks ago," the strategist said.
Also on "Squawk Box," Strategas Research Partners' Jason Trennert said he is bullish on financials for the longer-term for two reasons.
One is the yield curve steepening, which Trennert said helps net interest margins, and the other is Trump's call for deregulation, which may help some of the smaller banks hit hardest by Dodd-Frank regulations to moderate costs.
Trennert said institutional investors are also starting to come back into the market with a more positive outlook.
"I think people are weighing the fiscal and regulatory side of things more than trade," Trennert said, referring to Trump's proposals to boost infrastructure spending and deregulate banks but at the same raise tariffs, which could be economically harmful.
Appearing in an interview with Trennert, Mike Ryan, UBS' chief investment strategist, said it was "amazing … how quickly we shifted from focusing on the vices of the candidate … to the virtues of policies."
Still, many of his firm's forecasts for things like earnings and growth will depend on whether those policies turn into legislative action.
For now, Ryan said "our earnings outlook for 2017 is contingent upon ... the continued solid gains in terms of the underlying business model, but also a weakening of the dollar and also recovering energy prices."
The recent rise in the dollar and decline in energy prices could pose problems for earnings in 2017, but with other stimuli potentially in play, Ryan's move for now is to wait and see what legislative solutions come out of a Trump presidency.