Huge government spending is undermining the Fed's inflation battle, markets guru Larry McDonald warns

• Massive government spending is fueling inflation, according to markets guru Larry McDonald.
• "Washington is stepping on the gas and the brakes at the same time," he said Thursday.
• McDonald’s warning comes with the Federal Reserve’s chosen inflation gauge still running clear of its 2% target.

Huge government spending is likely undermining the Federal Reserve's ongoing fight against inflation, according to markets guru Larry McDonald.