Economy
” data-duration=”03:12″ data-editable=”settings” data-headline=”Gary Cohn: Fed was late on interest rate hikes” data-index=”idx-0″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_22e94139c0c0f1d2617b787e152ba5e9-h_39eea1cab45443d4073cf60470880b73-pageTop@published” data-video-id=”business/2022/06/21/gary-cohn-inflation-recession-federal-reserve-gr-orig.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_22e94139c0c0f1d2617b787e152ba5e9-h_39eea1cab45443d4073cf60470880b73-pageTop@published”>
Now playing
Gary Cohn: Fed was late on interest rate hikes
” data-duration=”03:41″ data-editable=”settings” data-headline=”Beyoncé’s single dubbed anthem for ‘Great Resignation'” data-index=”idx-1″ data-show-name=”Early Start” data-show-url=”https://www.cnn.com/shows/early-start” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_2f68eba0fe4c0a72f35ec763058f6597″ data-video-id=”business/2022/06/22/new-beyonce-single-break-my-soul-jobs-es-melas-vpx.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_2f68eba0fe4c0a72f35ec763058f6597″>
Now playing
Beyoncé’s single dubbed anthem for ‘Great Resignation’
” data-duration=”03:41″ data-editable=”settings” data-headline=”How raising rates could threaten demand and production” data-index=”idx-2″ data-show-name=”Quest Means Business” data-show-url=”https://www.cnn.com/shows/quest-means-business” data-source=”CNNBusiness” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_80183cade3becf4c95ee838db7cea4ef” data-video-id=”business/2022/06/17/fed-rate-hikes-supply-and-demand-economy-investment-manager-qmb-vpx.cnnbusiness” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_80183cade3becf4c95ee838db7cea4ef”>
Now playing
How raising rates could threaten demand and production
” data-duration=”05:48″ data-editable=”settings” data-headline=”Executives torn on recession risk as fears grow for global economy” data-index=”idx-3″ data-show-name=”” data-show-url=”” data-source=”CNNBusiness” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_b15b324d3bcc547fffc87ab160a76af9″ data-video-id=”business/2022/06/16/marketplace-europe-recession-risks-economy-business-executives-davos-2022-quest-pkg-vpx.cnnbusiness” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_b15b324d3bcc547fffc87ab160a76af9″>
Now playing
Executives torn on recession risk as fears grow for global economy
” data-duration=”02:03″ data-editable=”settings” data-headline=”The Fed anticipates more rate increases after announcing biggest hike in 28 years” data-index=”idx-4″ data-show-name=”Newsroom” data-show-url=”https://www.cnn.com/shows/newsroom” data-source=”CNNBusiness” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_1a425a5e6f7a2c733dd319b4d01ad416″ data-video-id=”business/2022/06/15/federal-reserve-interest-rate-hike-egan-sot-newsroom-vpx.cnnbusiness” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_1a425a5e6f7a2c733dd319b4d01ad416″>
Now playing
The Fed anticipates more rate increases after announcing biggest hike in 28 years
” data-duration=”01:02″ data-editable=”settings” data-headline=”What the interest rate hike means for you” data-index=”idx-5″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_21877004886aa7dd7f0bfc5bda278fd8″ data-video-id=”business/2022/06/15/interest-rates-fed-christine-romans-orig-mss.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_21877004886aa7dd7f0bfc5bda278fd8″>
Now playing
What the interest rate hike means for you
” data-duration=”02:07″ data-editable=”settings” data-headline=”Realtor.com chief economist shares her advice for homebuyers and sellers” data-index=”idx-6″ data-show-name=”” data-show-url=”” data-source=”CNN Business” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_aa3779cd819775b3a217af4002a04152″ data-video-id=”business/2022/06/15/markets-now-homebuying-selling-advice-zw-orig.cnn-business” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_aa3779cd819775b3a217af4002a04152″>
Now playing
Realtor.com chief economist shares her advice for homebuyers and sellers
” data-duration=”01:59″ data-editable=”settings” data-headline=”He predicted US inflation would rise. Hear what he thinks about a recession” data-index=”idx-7″ data-show-name=”Don Lemon Tonight” data-show-url=”https://www.cnn.com/shows/cnn-tonight” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_5b97f81c9deeaf04bdf5f43f79123867″ data-video-id=”business/2022/06/15/larry-summers-recession-inflation-fed-rate-hike-dlt-vpx-sot.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_5b97f81c9deeaf04bdf5f43f79123867″>
Now playing
He predicted US inflation would rise. Hear what he thinks about a recession
” data-duration=”03:47″ data-editable=”settings” data-headline=”Here’s what the US economy can expect if a recession hits” data-index=”idx-8″ data-show-name=”Quest Means Business” data-show-url=”https://www.cnn.com/shows/quest-means-business” data-source=”CNNBusiness” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_ceb4c6ee7f0b1172c51006720406e4f3″ data-video-id=”business/2022/06/13/recession-us-economy-inflation-zandi-qmb-vpx.cnnbusiness” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_ceb4c6ee7f0b1172c51006720406e4f3″>
Now playing
Here’s what the US economy can expect if a recession hits
” data-duration=”03:20″ data-editable=”settings” data-headline=”Former labor secretary on how Biden administration can combat inflation” data-index=”idx-9″ data-show-name=”Newsroom” data-show-url=”https://www.cnn.com/shows/newsroom” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_0c72aae7ad23125979e18c21f70082f4″ data-video-id=”business/2022/06/12/reich-inflation-economy-corporations-biden-administration-acostanr-vpx.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_0c72aae7ad23125979e18c21f70082f4″>
Now playing
Former labor secretary on how Biden administration can combat inflation
” data-duration=”03:15″ data-editable=”settings” data-headline=”How this mom is using coupons to combat inflation” data-index=”idx-10″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_0e4fcd57a44e4f51b80b51590e76879d” data-video-id=”business/2022/06/12/couponing-inflation-mcmorris-santoro-ndwknd-vpx.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_0e4fcd57a44e4f51b80b51590e76879d”>
Now playing
How this mom is using coupons to combat inflation
” data-duration=”03:24″ data-editable=”settings” data-headline=”Wyndham Hotels CEO: Demand is outpacing inflation in hotel industry” data-index=”idx-11″ data-show-name=”Quest Means Business” data-show-url=”https://www.cnn.com/shows/quest-means-business” data-source=”CNNBusiness” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_baed2e9525f277529802c46eea2cffe9″ data-video-id=”business/2022/06/10/travel-demand-summer-wyndham-hotels-president-qmb-vpx.cnnbusiness” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_baed2e9525f277529802c46eea2cffe9″>
Now playing
Wyndham Hotels CEO: Demand is outpacing inflation in hotel industry
” data-duration=”01:08″ data-editable=”settings” data-headline=”‘Tough number to swallow’: Romans breaks down inflation data” data-index=”idx-12″ data-show-name=”New Day” data-show-url=”https://www.cnn.com/shows/new-day” data-source=”CNNBusiness” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_98ed7062b2cb94717c3a29fd84ee670f” data-video-id=”business/2022/06/10/inflation-consumer-price-index-may-romans-newday-vpx.cnnbusiness” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_98ed7062b2cb94717c3a29fd84ee670f”>
Now playing
‘Tough number to swallow’: Romans breaks down inflation data
” data-duration=”03:29″ data-editable=”settings” data-headline=”Retirees becoming homeless at higher rate than other age groups amidst inflation” data-index=”idx-13″ data-show-name=”New Day” data-show-url=”https://www.cnn.com/shows/new-day” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_3fa66e1e7ea8133b88958a87dba15f73″ data-video-id=”business/2022/06/10/inflation-seniors-rent-health-homelessness-pkg-cohen-newday-ldn-vpx.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_3fa66e1e7ea8133b88958a87dba15f73″>
Now playing
Retirees becoming homeless at higher rate than other age groups amidst inflation
” data-duration=”03:18″ data-editable=”settings” data-headline=”OECD secretary-general explains global cost of the Russian oil embargo” data-index=”idx-14″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_d2da2884c14a1aac351f99f0b13edb4f” data-video-id=”business/2022/06/08/oecd-secretary-general-global-economic-report-russia-oil-embargo-inflation-firstmove-vpx.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_d2da2884c14a1aac351f99f0b13edb4f”>
Now playing
OECD secretary-general explains global cost of the Russian oil embargo
New York CNN Business —
Corporate America is frustrated with the Federal Reserve for waiting too long to attack inflation, according to former Trump economic adviser Gary Cohn.
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.
Cohn, a former Wall Street executive who is now vice chairman of IBM (IBM), said the Fed was “late” to raising interest rates and criticized the central bank for continuing its bond-buying stimulus program “deep into this inflationary cycle.”
“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.”
Now, the Fed is playing catch-up. Fed officials last week announced the biggest interest rate hike since 1994, raising the specter of surging borrowing costs on everything from mortgages and car loans to credit cards.
Asked if Chairman Jerome Powell is still the right man to lead the Fed, Cohn offered little support.
“Look, he is the chairman of the Fed,” said Cohn, who in 2017 was himself a candidate for the position before Trump tapped Powell. “He’s doing his job. You could argue that you disagree with what he did. I disagree with what he did. I think they were late to the game and raising rates. But he is the chairman.”
Cohn noted that Powell is hardly the first Fed chair to face criticism for either keeping rates too low for too long, or failing to cut them fast enough.
Of course, inflation has been aggravated by Russia’s invasion of Ukraine. The war has driven up prices on food, energy and other materials.
“We clearly had inflationary pressures last year pre-war, but the war in Ukraine has clearly accelerated it,” Cohn said.
The Fed declined to comment Tuesday. But at the Wall Street Journal’s Future of Everything Festival last May, Powell said the Fed makes decisions in real-time.
“If you replay last summer, we had a real spike in inflation that began in March, April, May, June of last year, and then inflation came down month after month after month… through the end of the summer,” he said. “So, we were concerned because we saw inflation spreading more broadly, and because we didn’t see supply chain issues improving… We had real concerns.”