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I think the Fed's wrong on inflation

The Federal Reserve seems to have gotten a little more hawkish in its latest policy statement ... Suggesting that inflation may not remain below it's target for much longer.

I would heartily disagree.

Janet Yellen, chair of the U.S. Federal Reserve.
Getty Images
Janet Yellen, chair of the U.S. Federal Reserve.

The decline in inflation and inflation expectations is NOT just the result of falling energy prices.

Read MoreR.I.P. QE: Fed shuts off printing presses

Deflation is most obviously a problem abroad, witness dramatic rate cuts in Poland and Sweden, which along with Europe, are using zero-interest-rate policy to fight falling prices.

The Fed will, I believe, will get back to a more accommodative policy, but for now, the markets are on the defensive, fearing a hike in rates sooner, rather than later.

Read MoreHere's what changed in the new Fed statement

I stand by rates staying lower for longer, which the data will bear out on be inflation front in the months ahead.

Commentary by Ron Insana, a CNBC and MSNBC contributor and the author of four books on Wall Street. He also editor of "Insana's Market Intellgence," available at Marketfy.com. He delivers a daily podcast, "Insana Insights," and a long-form weekly version, both available on iTunes and at roninsana.com. Follow him on Twitter @rinsana.

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