Ken Griffin, the founder of investment firm Citadel, has strongly condemned US President Donald Trump’s ongoing attacks on the Federal Reserve. In one of the most scathing rebukes from a prominent American business leader since the White House initiated legal action against the central bank last week, Griffin warned that Trump’s onslaught against the Fed would put “he and his party in a precarious position”.
Speaking at a conference in Chicago, Griffin did not mince his words, describing Trump’s sustained criticism of the Fed’s monetary policy decisions as a “political misstep”. The Citadel chief argued that the President’s combative approach towards the independent central bank was highly damaging and could have severe ramifications for the Republican party.
Trump has repeatedly lambasted the Federal Reserve, accusing it of undermining the US economy through interest rate hikes. The President’s attacks reached a crescendo last week when the White House announced that it was exploring legal options to challenge the Fed’s actions.
However, Griffin firmly rejected Trump’s assessment, insisting that the central bank was simply fulfilling its mandate to maintain price stability and maximum employment. The Citadel founder emphasised that the Fed’s decisions should be guided by economic data rather than political considerations.
“The Fed is doing its job. It is acting in the best interests of the American people, not the political interests of the White House,” Griffin stated. “President Trump’s continued attacks on the Fed’s independence are deeply concerning and could have serious consequences for the economy and the Republican party.”
The Citadel chief’s rebuke adds to the growing chorus of business leaders and economists who have criticised Trump’s antagonistic approach towards the Federal Reserve. Many have warned that the President’s actions risk undermining the central bank’s credibility and potentially destabilising financial markets.
Despite the backlash, the White House has shown no signs of backing down, with Trump reiterating his calls for the Fed to cut interest rates and provide more economic stimulus. However, Griffin’s scathing comments suggest that the President’s strategy could come at a significant political cost.
As the battle between the White House and the Federal Reserve continues to unfold, the implications for the US economy and the Republican party’s electoral fortunes remain uncertain. One thing is clear, however: the Citadel founder has delivered a powerful message that the President’s attacks on the central bank are a serious misstep that could have far-reaching consequences.
