Markets already know the Federal Reserve will deliver more rate hikes this year. They're just not prepared for how much it will hurt, according to Peter Boockvar, chief investment officer of Bleakley Advisory Group.
"The Fed is trying to ease the effect of their rate hike cycle by being very transparent," Boockvar told CNBC's "Futures Now" this week. It is "trying to convince us that quantitative tightening is like watching paint dry."
Fed chair Jerome Powell is carrying on Janet Yellen's legacy of full transparency by prepping the markets as best as he can for inevitable monetary tightening. The Fed's message of 'steady-as-she-goes' rate increases has calmed Wall Street into thinking this will mostly be a smooth path higher.
Boockvar expects tighter monetary policy will have a far greater impact than the Fed is telegraphing, and the market is anticipating.
"Regardless of how they tell us, regardless of how they do it, there's still a rise in the cost of capital, there's still a drain of liquidity," he said.
He used a colorful analogy for the shock the markets will be dealt, even with the Fed's fair warning.
"If I gave you a month's notice that I'm going to punch you in the face, when I punch you in the face, it's still going to feel the same, it's still going to hurt," he said.