Vanguard's Greg Davis believes the Federal Reserve is not done hiking interest rates. According to the firm's chief investment officer, the central bank's next move higher could happen before year's end. People [are] actually earning a real return — a real income on their fixed-income investments," said Davis. "It's a very different market environment than what we've seen in the last 10 to 15 years or so." "Even before the global financial crisis, the neutral rate of Fed funds was actually higher than what we've seen recently as well," Davis said.

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Persons: Vanguard's Greg Davis, CNBC's, Davis, we've Organizations: Federal Reserve, Treasury