Citadel CEO Ken Griffin Warns Trump Against Federal Reserve Interference

Ken Griffin, the billionaire CEO of Citadel and a prominent GOP donor, has emerged as one of the few Wall Street executives openly criticizing President Donald Trump's efforts to undermine Federal Reserve independence. Griffin warned in a Wall Street Journal op-ed that Trump's public pressure on the Fed to lower interest rates, including calls to dismiss Fed governors and firing the head of the Bureau of Labor Statistics, risks triggering higher inflation, increased market risk premiums, and weakened investor confidence in U.S. institutions. Despite broad business community silence, Griffin and economist Anil Kashyap have cautioned that political meddling with the Fed threatens long-term economic health by damaging faith in the central bank's autonomy, which is crucial for managing inflation and securing favorable borrowing costs. Treasury Secretary Scott Bessent defended Trump's approach as expressing views on monetary policy, while most financial analysts expect the Fed to cut rates following weak jobs reports. Griffin emphasized that undermining the Fed's independence could have severe consequences for government, corporate, and consumer borrowing costs, potentially exacerbating national debt challenges. His outspoken stance highlights growing concern among economists and some business leaders about the risks of politicizing the Federal Reserve under Trump's administration.