Citadel CEO Ken Griffin says inflation may have peaked but a recession is coming. “We’re in a very uncertain time for investors,” the executive cautioned, adding that the Federal Reserve “is grappling with a level of inflation we haven’t seen in a long time.”
Citadel’s Ken Griffin on US Economy, Inflation, Recession, and Cryptocurrency
Kenneth Griffin, founder and CEO of global investment firm Citadel, shared his views on a variety of topics, including the US economy and cryptocurrency, at the CNBC Delivering Alpha conference Wednesday.
“It’s a very uncertain time,” he began. “We are grappling with the threat of nuclear war in Ukraine. We’re grappling with unprecedented central bank interventions. We’re grappling with record-high inflation in the United States in our lifetimes. We’re in a very uncertain time for investors,” Griffin stressed.
Noting that the US equity market is showing “a level of resilience” and the US economy “is still strong,” he asserted:
We’re probably looking at peak inflation having just occurred or just about to occur. So the forward trajectory on a number of key fronts looks somewhat better domestically, again, assuming nothing goes totally off the rails abroad.
Regarding whether the US economy will slide into a recession, he opined: “Everybody likes to forecast recessions, and there will be one, it’s just a question of when and, frankly, how hard.”
The Citadel boss continued: “And is it possible that end of ’23 we have a hard landing? Absolutely.” He further shared that his investment firm is “very focused on the possibility of a recession” as part of risk management.
“The Fed is grappling with a level of inflation we haven’t seen in a long time. They have a very limited toolkit,” Griffin stressed, warning that the Federal Reserve can raise interest rates but it “has very adverse consequences,” such as to home builders and auto manufacturers. However, the executive believes that “right now, the American consumer is feeling pretty good about where things stand on an absolute basis.”
The Citadel founder proceeded to talk about Europe. “There’s a war in Europe. There is record inflation,” he said, adding:
Europe is probably already in a recession because of the high cost and scarcity of energy.
Nevertheless, he pointed out that while the market is down, “it’s not down as much as you probably would have thought if you looked at the news headlines.”
Griffin was also asked about cryptocurrency. “There’s a bit of an intergenerational fight here,” he began. “I see my younger colleagues much more crypto-centric than my older colleagues, and for good reasons, including, ironically, sort of a libertarian view of the world.” The Citadel CEO described:
As our government gets bigger and bigger, a certain number of people sort of feel like, you know what, I want the privacy … want to pull away from government.
“So what’s interesting is we see people pulling away from big governments when they look at assets like cryptocurrency, which is a real irony given how people view government can solve so many other problems,” he concluded.
What do you think about the comments by Citadel CEO Ken Griffin? Let us know in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.