Even though President-elect Donald Trump's policies should position the economy for growth, raising interest rates may not have the positive effect many investors are hoping for, analyst Peter Boockvar said Monday.
Though Boockvar, chief market analyst at The Lindsey Group, said he is bullish on Trump's potential policies, he told CNBC's "Squawk Box" he was concerned about interest rates being "artificially suppressed" for so many years.
"We have to get from here to there, there being a better economic story, but this rise in interest rates I don't think is necessarily painless," he said.
Boockvar said he hopes the expected rate hike in December normalizes interest rates, but finds it hard to believe that will happen easily.
His main concern is that the United States debt, which is currently 250 percent of GDP, will be subject to higher interest expense if rates rise, which may cause an increase in inflation.
"Over the past seven years, we had a better market than we had an economy. We may have a better economy than markets as rates go higher," Boockvar said.
Still, the analyst remained bullish. "The economy should be better over the next few years than it was over the past couple of years," he said.