"I think 2017 will be driven more by the Fed, the ECB, the BOJ, more so than what Trump actually unveils," the Lindsey Group analyst told CNBC's "Squawk Box."
The Fed indicatedin December it expects to raise interest rates three times this year, which Boockvar said was the first reason for the central bank overshadowing Trump's policy moves.
The analyst cited the European Central Bank and Bank of Japan's quantitative easing measures as other reasons why central banks will lead the way in 2017. Quantitative easing is an attempt by central banks to artificially lower interest rates by buying government and other securities to boost the money supply.
"I think ideally, [Fed Chair Janet] Yellen, in her models, wants to raise three times for the next three years and get to her magic 3 percent," Boockvar said, noting that bond market indicators are not pricing in three rate hikes for this year.
"They said they're not even going to raise once until June. I think she is going to be a little more hawkish next week. I think she wants to give herself flexibility that March is a real possibility. [And] I think the market is not set up for that," he said.
Yellen appears before Congress next week to give the Fed's semi-annual outlook on the economy.
Bookckvar said with markets running high on expectations of Trump's policies, she may be more hawkish and signal an upcoming hike.
"The market is giving her a gift to raise rates, at least the stock market. She would rather raise rates with the market at all-time highs than be forced to do it if the market's down 10 percent," he said.