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Bannon's ouster may not change much economically, these strategists say

  • "That's my question at this stage," said Talley Leger, an equity strategist at Oppenheimer Funds. "What is the strategy?"
  • That doesn't mean the domestic economic outlook is negative, however.
  • Strong consumer sentiment and retail numbers, along with a weakening dollar that would help manufacturing and exports, could lead to stronger economic growth in the second half of the year, said Ascent Private Capital Management strategist Tom Hainlin.

While floor traders cheered Friday afternoon at the news that chief White House strategist Stephen Bannon was out, some strategists aren't confident it will change much economically.

"That's my question at this stage," Talley Leger, an equity strategist at Oppenheimer Funds, said Friday on CNBC's "Power Lunch." "What is the strategy? My broader concern here is we still don't have a pro-growth, pro-business agenda."

Michael Farr, president of Farr, Miller & Washington and a CNBC contributor, had similar thoughts earlier in the show.

"What's the functioning group in the White House?" he said. "Can they get some kind of policy to Capitol Hill, and does anybody in the White House have a relationship with any of these people [in the Capitol] sufficient to actually have a conversation and get anything done?"

That doesn't mean the domestic economic outlook is negative, however.

Strong consumer sentiment and retail numbers, along with a weakening dollar that would help manufacturing and exports, could lead to stronger economic growth in the second half of the year, said Ascent Private Capital Management strategist Tom Hainlin, "even with the political headlines we seem to be getting on a daily basis."

One thing to keep an eye on is the difference between the 10-year and the 2-year yield curve, he said, calling it a "classic business cycle indicator."

"As long as the curve is still positively sloped, I think signs are good that you can still see an extension of the business cycle," he said also on "Power Lunch."

But volatility has been increasing recently and that is likely to continue, Farr said.

"Investors can take a look at the markets with a gnat-like attention span," Farr said, citing the close watching of North Korea early this week and the shifts in the market the last two days on political news reports.

"The markets take off, and the risk grade is back on. Risk grade off, risk grade on," he said.

But, Farr did say the recent news regarding Bannon was "probably an overall positive," adding that fundamentals for the economy remain strong, including low unemployment and good earnings.

Hainlin agreed.

"We still see a strong, global synchronized growth ... with strong economic fundamentals underneath it," he said.

WATCH: Not much difference with Bannon gone