Ken Griffin Predicts Recession And Gives Powell A Piece Of Advice

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Ken Griffin, who was right with his bad omens about inflation launched a couple of years ago, is not very optimistic about the scenario that lies ahead. The American, founder of the Citadel hedge fund and one of the world’s great fortunes with a net worth of 36.5 billion dollars, has pointed out that “the configuration of a recession in the United States is developing” due to the “traumatic levels of inflation”, for which he has recommended to Jerome Powell himself, chairman of the Fed, to talk “less” about inflation, as he pointed out in an interview with Bloomberg.

The billionaire pointed out that the Fed is tied up in how much it can fight inflation with interest rate hikes and gave a very illustrative example, since his tool “is like having surgery with an unsharpened scalpel”. Hence, he warns about the configuration of such a recession.

These statements come after Fed Chairman Jerome Powell told Congress that the central bank is likely to raise interest rates more than previously thought, especially after better-than-expected economic data, which was a slab for Wall Street and the rest of the major stock markets.

Ken Griffin was highly critical, noting that, “every time they take their foot off the brake or the market perceives that they are doing it and the job is not done, they make their job even harder.”

Citadel’s founder is one of the most relevant voices for the markets, as he predicted in 2020 that U.S. markets would struggle with rampant inflation. Moreover, his more accurate vision than the rest made him storm the throne of Wall Street and beat Ray Dalio after earning $16 billion (14,736 million euros), surpassing even the haul obtained by John Paulson in 2007 with his bet against subprime mortgages.

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