“The risk in the banking system still lies in credit risk in middle-tier banks,” Citadel CEO Ken Griffin says during an interview with Sonali Basak at the Citadel Securities Global Macro Conference in Miami.

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Billionaire hedge fund manager Ken Griffin has made a bold prediction about the future of the United States economy, stating that a recession is likely to occur in the second quarter of next year. Griffin, who is the founder and CEO of Citadel, one of the world’s largest and most successful hedge funds, has a reputation for being a shrewd and insightful investor, and his comments are bound to have an impact on the financial markets.

In an interview with CNBC, Griffin expressed his concerns about the potential for an economic downturn in the near future. He cited several factors that have led him to believe that a recession is on the horizon, including rising inflation, supply chain disruptions, and the ongoing impact of the COVID-19 pandemic.

Griffin’s comments come at a time when many analysts and investors are closely monitoring the signs of economic health. The U.S. economy has experienced a period of rapid growth and recovery following the sharp downturn caused by the pandemic, but there are growing concerns that this momentum may not be sustainable in the long term.

In recent months, inflation has been a major topic of conversation, with consumer prices rising at the fastest rate in over a decade. This has led to fears that the Federal Reserve may need to take action to control inflation, which could in turn have negative effects on economic growth.

Additionally, supply chain disruptions have caused widespread disruptions to manufacturing and distribution, leading to shortages of goods and increased prices for consumers. These issues have been exacerbated by the ongoing impact of the pandemic, which has caused ongoing disruptions to businesses and supply chains around the world.

Griffin’s prediction of a recession in the second quarter of next year is a sobering warning for investors and policymakers. While it is impossible to predict the future with certainty, his track record as a successful investor gives weight to his concerns.

It is important for investors to heed Griffin’s warning and take steps to protect their portfolios in the event of an economic downturn. Diversifying investments, reducing risk exposure, and maintaining a long-term perspective are all important strategies for weathering the storm of a recession.

While Griffin’s prediction may be alarming, it is also a call to action for policymakers and business leaders to take steps to mitigate the potential impact of a recession. By addressing the underlying causes of economic instability, such as inflation and supply chain disruptions, it may be possible to avoid the worst effects of a downturn.

Ultimately, only time will tell whether Griffin’s prediction comes to pass. In the meantime, investors and policymakers should be vigilant and prepared for the possibility of a recession in the not-too-distant future.