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The Trump honeymoon is over, analyst Peter Boockvar says

The stock market may have rejoiced after President Donald Trump's win, but the "honeymoon is over," closely followed analyst Peter Boockvar told CNBC on Friday.

While investors hopeful about promised tax and regulatory cuts piled into U.S. equities after the election, the market "hasn't done anything" since mid-December, the chief market analyst for The Lindsey Group pointed out.

"I'm as excited as anybody in having lower taxes and in easing regulatory burden. But I think the tax reform is a lot more complicated and I think we need to see how this unfolds over the next few months," Boockvar said in an interview with "Closing Bell."

And if the market is right in predicting an acceleration of growth, the Federal Reserve will be raising interest rates three times this year — or more, he noted.

"So we'll have this tug of war between tightening of monetary policy and higher interest rates on one side and the optimism about fiscal relief on the other side," said Boockvar.

In fact, he believes as it stands right now, the Fed is already far behind the curve when it comes to raising interest rates.

"The Fed funds rate should not be where it is. It is way too low relative to the state of the economy. It is way too low relative to the potential fiscal stimulus we're going to get," he said. "The Fed is just playing this fearful game that somehow they are going to muck everything up if they happen to raise more than three times this year."

Meanwhile, stocks closed higher on Friday after a better-than-expected employment report, with the Dow Jones industrial average posting its best day of 2017.

Financials also got a boost from Trump signing an executive order aimed at watering down banking regulations. The Financial Select Sector SPDR Fund closed 2 percent higher on Friday.

Keith Bliss, senior vice president at Cuttone & Company, said everything is coming together for the financial sector after years of being beaten down.

The economy is "still humming along," bank lending should pick up and there will be a rollback in regulations, he pointed out.

"That's an important aspect to the overall health of the market. Financials should carry the way," Bliss told "Closing Bell."

Joseph Tanious, investment strategist at Bessemer Trust, also believes U.S. banks and financials stand to do well in this environment, but he cautioned that a lot of the expectations have already been baked into the market.

"We don't want to get too carried away as there are still some risks that I think could lead to more market choppiness in months and quarters ahead," he said in an interview with "Closing Bell."

— CNBC's Fred Imbert contributed to this report.

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