Ken Griffin, founder and CEO of Citadel, the world's largest hedge fund, said on Monday that if the Federal Reserve decides to remain silent at its September interest rate meeting, it is likely to cut interest rates in December.
He emphasized that even if it is postponed until the end of the year, the Federal Reserve will definitely cut interest rates within the year, although he has been calling for a cautious approach.
"At that time, whether inflation will truly slow down remains a question. Wage growth and de globalization have eliminated sustained deflationary trends, and to be frank, this trend has been helping to price goods for most of our adult lives," he said.
In March of this year, Griffin stated that the Federal Reserve should slowly lower interest rates to avoid the possibility of having to raise rates in the future. He said on Monday that as the economy continues to grow, the Federal Reserve must strike a balance in controlling inflation, which "makes the Fed's job even more difficult.".
Nevertheless, he stated in a media interview on Monday that maintaining a higher level of interest rates for a longer period of time is the "right choice".
According to the Bloomberg Billionaires Index, Griffin's net assets exceed $37 billion and he founded the hedge fund Citadel in 1990. He later founded the trading company Citadel Securities LLC, providing services to asset management companies, banks, brokerage and trading firms, hedge funds, government agencies, and public pension plans.
In the latest interview, Griffin also praised the cabinet candidates that Trump may nominate. Previously, he had publicly stated that he believed former President Trump would win the election, but he refused to disclose whether he would support Trump.
He said that the previous tariff policy of the former president was "regrettable", but overall, the Trump administration will benefit the capital markets.
"I am very dissatisfied with the policies of this administration (the Biden administration). I want to hear what Trump will do for the United States. I want to see what his policy agenda is like," he said at the time.
Finally, Griffin also criticized the efforts of US regulatory agencies to tighten investment company rules, stating that the proposed regulatory regulations may make it more difficult for proactive fund managers to succeed. He stated that hedge funds can help improve the efficiency of the US capital market.