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Fed not nearly worried enough about inflation: Pros

The Federal Reserve should be a lot more concerned about inflation, two economists told CNBC on Wednesday ahead of the central bank's policy statement due out in the afternoon.

While policymakers are expected to continue bond-purchase tapering by another $10 billion a month, the Fed would still be buying at a $35 billion pace. "They're easing into inflation accelerating. It's the only time we've really seen this," said Drew Matus, senior U.S. economist at UBS.

The most recent inflation reading, the consumer price index, rose 0.4 percent last month—higher than expected and the biggest increase since February 2013. The annual increase was 2.1 percent.

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The Fed's 2 percent inflation target is just that, a target, BNY Mellon Chief Economist Richard Hoey said in a "Squawk Box" interview. The Fed might be thinking "we've run below 2 percent for a while, what's so bad about running at 2.5 percent for while."

Matus said that's dangerous. "Be careful what you wish for. They were worried about inflation being too low."

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Both Matus and Hoey see wage inflation as a potential problem for the Fed, which ironically would welcome it.

"If we have a pickup of wage inflation it'll be welcomed at the Obama administration. It will be welcomed at the Fed. And it will be welcomed by the American people," Hoey said.

Matus said: "[Inflation] is also going to come from the fact that we haven't invested in capacity in this country for a long time. If there's any sort of pickup in demand, there's just not the capacity to meet it, outside of a certain a few industries."

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—By CNBC's Matthew J. Belvedere

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