• Federal Reserve Chairman Janet Yellen said the Fed would need to gradually raise interest rates when she testified on Capitol Hill this week.
  • Peter Costa and Joe Duran told "Closing Bell" the Fed may hold off on raising rates again this year in the wake of Friday's weak consumer price index and retail sales data.
  • Duran said the market is seeing a "complete unwind of the Trump trade" thanks to gridlock in Washington.

The Federal Reserve may delay raising interest rates after Friday's soft economic data, strategists say.

Peter Costa, president of Empire Executions, told "Closing Bell" on Friday he thinks Janet Yellen may wait until December to raise interest rates again after weak consumer price index data and retail sales were reported Friday. Yellen said she might hike rates again this year in testimony on Capitol Hill.

"I think that with her getting a little more dovish, I think that that may be pushed back until December, which, you know for financials may not be the great thing," Costa said. "But I think the financials are on a totally different footing now."

Federal ReservBoard Chairwoman Janet Yellen testifies before the Senate Banking, Houseing and Urban Affairs Committee in the Dirksen Senate Office Building on Capitol Hill July 13, 2017 in Washington, DC.

Joe Duran, CEO of United Capital, said on "Closing Bell" he does not think the Fed will raise rates again this year, despite what Yellen has said. He said he thinks the Fed needs to focus on unwinding its balance sheet rather than raising rates again this year.

The wisdom guiding this year, such as investing in small cap companies and locally, has turned out to be "the complete opposite," Duran said.

"I think what we're seeing is a complete unwind of the Trump trade that occurred from October, November, all the way to January, and everything is basically reversed out," he said. "We were hoping to see a 2.5, 3 percent growth rate. We're now hoping we'll see 2 (percent)."

Duran blames gridlock in Washington, saying the Trump administration has not delivered on its pro-growth promises, such as cutting regulations and taxes. JPMorgan Chase CEO Jamie Dimon expressed his frustration over D.C.'s dysfunction on an earnings call Friday morning.

Next week will offer more insights into the health of the economy, with data on the housing market set to release.