Politicians and regulators have prevented a supply-side solution to growth because they are focused on punishing banks, strategist Jason Trennert said Monday.
"There's something incongruous between adding tons of money to the monetary system and then bringing [JPMorgan chief] Jamie Dimon down to Washington every two or three weeks, and then wondering why there's no bank lending. Those two things do not go together," the chief investment strategist at Strategas said in an interview on CNBC's "Squawk Box."
Trennert noted that while excess reserves are at an all-time high, the velocity at which that money is entering the broader economy and supporting capital formation among U.S. business has slowed—and that's due in part to Washington "beating the heck out of banks."
"I wish a lot of politicians would stop trying to get scalps, accumulate scalps, from something that happened six or seven years. We have to look forward," Trennert said.
Washington could have created more sustainable economic growth if it had embarked on supply-side fiscal policies that boosted corporate profits rather than focusing on monetary policy, the benefits of which have not trickled down to the Americans it was meant to help, he said.
While the economy is doing "OK," Trennert noted that corporate profit margins are at an all-time high and labor's share of corporate income is at a low.
"The irony is that the policies have helped the wrong people. They've not helped the people that they were designed to help the most in the first place," he said. "It's been an enormous boon for anyone that has excess financial assets."
Trennert said he would much rather see trickle-down through capital market formation rather than the reflation of capital assets.