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 whole 2% target is an absolute trap," The Ironsides Macroeconomics founder said in an interview with CNBC on Tuesday.
But elevated inflation isn't necessarily a hindrance to the economy, Knapp said, pointing to 3%-4% inflation in the early 90s, years when the economy expanded and benefited from a huge boom in business spending.