Story perspectives

Citadel's Ken Griffin Warns Trump on Fed Independence

9/11/2025

Summary

Story summary

Ken Griffin, CEO of Citadel, criticized President Trump's attacks on the Federal Reserve, citing potential economic risks.
In a Wall Street Journal op-ed, he stressed the need for Fed independence to ensure economic stability.
Griffin warned that Trump's public pressure could result in higher inflation and borrowing costs.
As a major Republican donor, he has distanced himself from some of Trump's policies.
Other business leaders, like Kevin Hassett, share concerns about the politicization of monetary policy.

History

Historical Context

The Humphrey-Hawkins Act of 1978 established the Federal Reserve's dual mandate to promote maximum employment and stable prices. Tensions between political leaders and the Fed have resurfaced, reminiscent of the 1970s stagflation crisis, as Ken Griffin warns that President Trump's pressure could jeopardize the Fed's independence, potentially leading to higher inflation and borrowing costs, undermining financial stability.

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Story summary

Ken Griffin, CEO of Citadel, criticized President Trump's attacks on the Federal Reserve, citing potential economic risks.
In a Wall Street Journal op-ed, he stressed the need for Fed independence to ensure economic stability.
Griffin warned that Trump's public pressure could result in higher inflation and borrowing costs.
As a major Republican donor, he has distanced himself from some of Trump's policies.
Other business leaders, like Kevin Hassett, share concerns about the politicization of monetary policy.

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