Citadel founder and billionaire investor Ken Griffin said Tuesday that containing U.S. inflation could prompt the Federal Reserve to start cutting interest rates this summer.
The timing of a potential rate cut has been the subject of speculation and debate in the market in recent months. Most traders expect the central bank to start cutting interest rates in May.
U.S. prices rose modestly in December, with annual inflation remaining below 3% for the third month in a row, according to data released by the Commerce Department last week.
But Griffin warned about the widening U.S. budget deficit, which several business leaders have cited as one of their main economic concerns.
“We’re still dealing with reckless levels of federal spending. It’s creating an economic context that’s very different from any point in history,” he said at the Managed Funds Association Conference in Miami. Said at a network conference.
He added that if the federal government does not cut spending, it could lead to a loss of confidence in the U.S. creditworthiness in seven to 10 years, which is the “biggest systemic risk” facing the economy. Ta.
In a wide-ranging interview, Mr. Griffin also attacked what he saw as the anti-business stance of President Biden’s administration.
“This administration seems to be very focused on regulations that reduce access to public market capital… otherwise the cost of doing business will be higher,” he said.
Mr. Griffin’s hedge fund giant Citadel is one of the largest in the United States.
Reuters reported last month that the fund plans to return $7 billion in profits to investors after a year of double-digit gains.
It had also posted record profits last year.
The Federal Reserve began its two-day meeting on Tuesday.
