Cohn, who is frequently in touch with CEOs, told CNN that businesses have been experiencing wage inflation and surging input costs for more than a year.
“I think the business community is disappointed in the Fed having taken as long as they did to come to the reality of what the business community saw,” he said.
“They were behind the curve,” said Cohn, who served as the director of the National Economic Council from 2017 until 2018.
Fed officials initially shrugged off inflation last year as “transitory,” before eventually acknowledging a more persistent and pervasive problem.
“The business community has been seeing real inflation for a long period of time,” said Cohn, who was a top executive at Goldman Sachs before joining the Trump White House. “And I don’t think the business community ever thought it was transitory. I think they thought it was real. And they did not think this was going away anytime soon.”