The Federal Reserve's near-zero percent interest rate policy is hurting savers and keeping a lid on consumer spending, David Kelly, chief global strategist at JPMorgan Funds, told CNBC on Wednesday.
The central bank's bond-buying has not helped the economy any more than it would have without the quantitative easing program, he said in a "Squawk Box" interview.
Investors will be looking for signals on the future of QE and rates when the Fed concludes a two-day meeting and releases its policy statement at around 2 p.m. Eastern Time Wednesday. Fed watchers expect policymakers to stick with the program until the middle of next year, according to CNBC's Fed survey.
(Read More: Wall Street Boosts Outlook for QE: CNBC Survey)
Kelly said the economy is suffering from a lack of confidence, not a lack of liquidity.
"I don't see why the Federal Reserve is boosting liquidity—by doing so, depressing confidence to try and achieve [low] long-term interest rates," he said.
"I think that's a stupid policy," he said, adding: It's "akin to price-fixing."
Nobel Prize-winning economist Milton Friedman "would roll in his grave if he saw what the Federal Reserve is doing today," Kelly said, adding the Fed acted properly in response to the 2008 financial crisis but has not done an effective job in boosting the economy since then.
(Read More: Dovish Fed Seen Keeping Lid on Market Worry)
Kelly said he'd like to see interest rates start to rise because that would be a signal from the Fed that the economy is going better —making it more profitable for banks to make loans and giving consumers more confidence to increase their spending.
—By CNBC's Matthew J. Belvedere; Follow him on Twitter @Matt_SquawkCNBC