The Fed pursuing 2% inflation is an 'absolute trap' for the economy, 40-year market veteran says

• The Fed's 2% inflation goal is an "absolute trap," according to 40-year market veteran Barry Knapp.
• Knapp pointed to tightening credit conditions, suggesting more tightening from the Fed could cause a recession.
• Elevated prices aren't always a drag on the economy, he added, pointing to 3%-4% inflation in the 90s.

The Federal Reserve is chasing its goal of getting inflation down to 2% by aggressively raising interesting rates, but that's leading the economy into a "trap," according to 40-year market veteran Barry Knapp.

The long-run target of the US central bank is unrealistic and some of the recent bank failures could end up doing the Fed's job of tightening financial conditions anyway.