The Federal Reserve will not raise interest rates any time soon because it has fallen into the trap of following the market, rather than leading it, strategist Komal Sri-Kumar said Monday.

The president of Sri-Kumar Global Strategies noted that markets rallied after Friday's disappointing September jobs report, which showed weaker-than-expected gains in net nonfarm payrolls, flat wages and a falling labor participation rate.

"That is saying the markets believe that the Fed simply cannot hike rates," Sri-Kumar told CNBC's "Squawk Box."

"If they do go about and do the increase in rates in October or December, it is going to be a major shock because all the people positioned in fixed income and equity markets will have to reverse their positions because the Fed did something totally unexpected by the federal funds futures."

Read More Job creation misses big in September

Sri-Kumar said the Fed is an "abject follower of the market," and that's the last place investors want the central bank to be.

A greater percentage of market participants now see the Fed's policymaking committee raising rates in 2016 than this year, according to the CME's FedWatch tool, which measures 30-day fed funds futures prices.

The Federal Open Market Committee has held its benchmark fed funds rate near zero since December 2008. The committee's next meeting is Oct. 27-28.

Sri-Kumar told CNBC he was sticking by the call he made last month on "Squawk Box" that the Fed would not raise interest rates until 2017.

Read More No Fed interest rate hike until 2017: Sri-Kumar

Also on "Squawk Box," Mark Grant, managing director at Hilltop Securities, said he saw Friday's spike in stocks as "a sign of tremendous instability in the equity markets."

There was no technical evidence that suggested the jump was due to the market hitting a low; instead, it reflected the market's belief that the Fed will step in and save investors, he said.

Grant does not expect the FOMC to raise interest rates this year.

"Raising interest rates just is going to cause havoc in both the equity markets and real estate markets and anything connected to borrowing money," he said.

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