Ken Griffin Critiques Trump’s Fed Interference

Billionaire Ken Griffin, the founder and CEO of Citadel, has voiced concerns regarding President Trump’s antagonism towards the Federal Reserve.

In an op-ed published by the Wall Street Journal, Griffin criticized Trump’s interference in monetary policy, arguing that the United States has cultivated a significant degree of trust in its economic structure over the years, but this trust isn’t limitless. Griffin, alongside Anil Kashyap, a professor at the University of Chicago, indicated that if this trust diminishes, the market could react with significantly higher interest rates on long-term debts.

Trump has pressured Federal Reserve Chairman Jerome Powell to lower interest rates for several months, a request Powell—who was appointed during Trump’s first term—has resisted since last September.

Trump’s influence doesn’t end there. Recently, he announced the dismissal of Lisa Cook, a member of the Board of Governors, citing allegations of mortgage fraud. Cook has challenged this decision legally, highlighting the Fed’s independence from congressional influence. Reports indicate that the Justice Department has launched a criminal investigation regarding this matter.

Griffin and Kashyap expressed concerns that if the Fed bends to political pressure and inflation rises unchecked, many retired Americans could face a decline in their savings. They emphasized that senior citizens, who are often most affected by inflation, could potentially endure serious sacrifices in the mid-term.

The duo also called out Trump for his firing of former Bureau of Labor Statistics Director Erica Mantel, which followed disappointing employment data. Trump’s choice to replace her with Eji Antoni drew scrutiny due to Antoni’s controversial statements on social media and cable news. Antoni’s appointment awaits confirmation from the Senate.

According to a recent CBS News/YouGov poll, a majority—68%—believe the Fed should operate independently from governmental pressure, while only 32% agree that it should follow Trump’s directives. Furthermore, 30% of respondents think Trump should replace Fed committee members who disagree with him, whereas 70% oppose this idea.

Griffin and Kashyap stressed the importance of maintaining the Fed’s independence, arguing that it supports affordable borrowing, fosters sustainable growth, and maintains global confidence in U.S. institutions. They warned that if this trust is lost, restoring it could prove to be both costly and time-consuming.