Ken Griffin, Citadel on CNBC’s Delivering Alpha, September 28, 2022.
Scott Mill | CNBC
Ken Griffin, founder and CEO of Citadel, believes the Federal Reserve should slowly lower interest rates to combat stubborn inflation.
“If I’m her, I don’t want to cut too quickly,” Griffin said Tuesday at the International Futures Industry conference in Boca Raton, Florida. “The worst thing they could end up doing is cutting rates, pausing, and then quickly moving back toward higher rates. That, in my opinion, would be the most devastating course of action they could take.”
“So I think they’re going to be a little slower in cutting rates than people expected two months ago. I think we’re seeing how that plays out,” he added.
His comments came as data showed inflation rose again in February, with the consumer price index climbing slightly higher than expected on an annual basis. Increasing price pressures could cause the Fed to wait at least until the summer before starting to cut rates.
The billionaire investor said there were significant inflationary forces keeping prices high.
“We still have enormous government spending. This is inflationary. And we are also facing a phase of deglobalization in history. So we have two big, big tailwinds that continue to support the inflation narrative,” Griffin said.
Although the inflation rate is well below its peak in mid-2022, it is still well above the Fed’s 2 percent target. Fed officials have signaled in recent weeks that interest rate cuts are likely sometime this year, warning against letting up too soon in the fight against high prices.
The Fed’s next two-day monetary policy meeting is in a week.
Citadel’s flagship multi-strategy fund Wellington gained 15.3% last year.
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2024-03-12 20:32:23
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