As the Federal Reserve gradually increases interest rates, it is keeping a close eye on inflation.
However, JPMorgan chief global strategist David Kelly told CNBC on Wednesday he's getting "increasingly worried" that the central bank is "missing the big danger here."
"We haven't had an inflation problem in 25 years, but we've had a tech bubble, we've had a commodity bubble, we've had a housing bubble. All of those were fueled by too-easy money and all of them resulted in big market corrections or recessions — and one of them the biggest recession we've seen since the Great Depression," he said in an interview with "Power Lunch."
"Inflation's not the enemy. The gauge they've got to watch here [is] asset prices," Kelly added.
As expected, the Fed raised rates a quarter point on Wednesday, pushing the target range to 1.25 percent to 1.5 percent. It also raised its GDP estimate from 2.1 percent in September to 2.5 percent and forecast three rate hikes for 2018.
In a post-meeting news conference, Fed Chair Janet Yellen described continuing low inflation as a concern and a potential risk to policy.
"My colleagues and I continue to believe the factors that are responsible this year for holding inflation down are likely to prove transitory. That said, we all agree our inflation objective is important," she said. The Fed inflation target is 2 percent.