1990s era Fed Governor Lawrence Lindsey says rate hikes overdue.
Lindsay, who was a Regan-Bush era politican and central banking high flyer, doesn't often make headlines but he had strong words for Janet Yellen today.
He said the central bank had delayed normalization of rates "way beyond what is prudent."
"You would have been laughed out of the classroom" in graduate school if you proposed holding rates at zero with the unemployment rate at 5.4%, as the Fed is doing now, Lindsey said during a panel discussion on Fed policy at an event sponsored by the Peterson Foundation.
"At some point we're going to get a series of bad numbers, showing a little higher inflation and the market is going to say 'on my god, we're so far behind the curve' and force an adjustment that is going to be wrenching," Lindsey said.
...who laughs someone out of a classroom?
