Cohn, who’s continuously in contact with CEOs, informed CNN that companies have been experiencing wage inflation and surging enter prices for greater than a yr.
“I feel the enterprise neighborhood is upset within the Fed having taken so long as they did to come back to the truth of what the enterprise neighborhood noticed,” he stated.
“They have been behind the curve,” stated Cohn, who served because the director of the Nationwide Financial Council from 2017 till 2018.
Fed officers initially shrugged off inflation final yr as “transitory,” earlier than ultimately acknowledging a extra persistent and pervasive drawback.
“The enterprise neighborhood has been seeing actual inflation for an extended time period,” stated Cohn, who was a high govt at Goldman Sachs earlier than becoming a member of the Trump White Home. “And I do not suppose the enterprise neighborhood ever thought it was transitory. I feel they thought it was actual. And they didn’t suppose this was going away anytime quickly.”
Requested if Chairman Jerome Powell continues to be the appropriate man to steer the Fed, Cohn provided little help.
“Look, he’s the chairman of the Fed,” stated Cohn, who in 2017 was himself a candidate for the place earlier than Trump tapped Powell. “He is doing his job. You might argue that you just disagree with what he did. I disagree with what he did. I feel they have been late to the sport and elevating charges. However he’s the chairman.”
Cohn famous that Powell is hardly the primary Fed chair to face criticism for both maintaining charges too low for too lengthy, or failing to chop them quick sufficient.
“We clearly had inflationary pressures final yr pre-war, however the battle in Ukraine has clearly accelerated it,” Cohn stated.
“When you replay final summer season, we had an actual spike in inflation that started in March, April, Might, June of final yr, after which inflation got here down month after month after month… via the top of the summer season,” he stated. “So, we have been involved as a result of we noticed inflation spreading extra broadly, and since we did not see provide chain points bettering… We had actual considerations.”