Ken Griffin, founder and CEO of Citadel, suggested that the Federal Reserve might implement its first interest rate cut of the year in December, despite lingering uncertainty. Speaking at the Milken Institute Global Conference in Beverly Hills, Griffin emphasized that "stickier inflation in services" and the upcoming U.S. presidential elections could complicate the timing of any potential rate reduction. Inflation may ease around the election period, he noted, but this could deter the Fed from adjusting rates due to concerns over perceived political interference. "Big picture, we're making the right call by being more hesitant to cut rates," Griffin told the audience.
Griffin, who refrained from endorsing a specific presidential candidate for the 2024 elections, commended the potential names being considered for Donald Trump's cabinet as "really good." The hedge fund titan also expressed skepticism regarding the Federal Reserve's rate decisions due to the political climate surrounding the elections. He noted that political considerations could delay the central bank's rate cuts until the end of the year.
Market Overview:
-Citadel CEO Ken Griffin predicts a potential Fed rate cut in December, citing service sector inflation and upcoming U.S. elections.
Key Points:
-Griffin highlights concerns about persistent inflation in service industries as a hurdle for earlier rate cuts.
-He suggests the November presidential election could make the Fed wary of rate cuts due to potential political interpretations.
Looking Ahead:
-Griffin remains undecided on endorsing a presidential candidate but expresses approval for potential Trump cabinet picks.
-He maintains his halt on donations to Harvard University due to their handling of antisemitism concerns.
Beyond monetary policy, Griffin reiterated his decision to halt donations to Harvard University due to its handling of antisemitism on campus. He attributed the student protests against Israel's war in Gaza to systemic failures within the education system, specifically highlighting Ivy League institutions. "The failure of the education system is what you're seeing play out on the campuses of the Ivy League schools," Griffin said.
His remarks come amid widespread student demonstrations across U.S. universities, emphasizing a growing polarization over international conflicts. Griffin, who has donated more than half a billion dollars to Harvard University, remains critical of the institution's response, calling for greater accountability and action.
