President, Donald Trump expressed disagreement with Ken Griffin, a billionaire and a former supporter of Trump, who had criticized the President’s interference with the Fed’s independence.
Trump Says Fed Should've Hiked Rates Earlier, Slams Griffin
Trump expressed his views on the Federal Reserve’s policy on his Truth Social on Tuesday. He suggested that the Fed should have raised rates earlier in 2021 and called for a change in the way the organization operates.
He also “strongly” disagrees with Ken Griffin, the CEO of Citadel LLC, who had criticized Trump’s handling of the Fed. “We think Incompetence is more important than to defend theoretical independence,” stated Trump.
The president also quoted Jay Hatfield, CEO & CIO of Infrastructure Capital Advisors, and Greg Faranello of American Securities, both expressing concerns about the Federal Reserve’s actions, and suggesting the Fed cuts rate by 50, 75 or 100 basis points.
Trump stated that the entire organization (Fed) is broken and they need to base their decisions on “modern sources of information.” He slammed the Fed Chairman, Jerome Powell, whom he refers to as “Too Late” and the central bank, as they don’t believe in the importance of money supply. “It’s like the Pope not believing in Jesus,” stated Trump as he drew parallels.
GOP Donor Griffin Critiques Trump, Krugman Slams Bessent
Trump’s posts come at a time when his former supporter, Ken Griffin, has publicly criticized the president for meddling with the Federal Reserve. Griffin, who is a GOP Megadonor and voted for Trump in the 2024 presidential election, has warned that the president’s actions could jeopardize the independence of the Federal Reserve in an op-ed in the Wall Street Journal. He argued that the U.S. benefits from “strong economic fundamentals.”
Meanwhile, economist Paul Krugman has condemned Treasury Secretary Scott Bessent for attempting to undermine the independence of the Federal Reserve. Krugman accused Bessent of leading a “vile, underhanded, and sleazy” campaign to escalate the administration’s attacks on the central bank.
Author, Fund Manager, Columnist, Ruchir Sharma warns that the Federal Reserve's expected rate cut this month, driven by political and economic pressures, could trigger a risky asset bubble. He emphasized that the current financial conditions are too loose to warrant a new easing cycle.
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