https://external-preview.redd.it/myXFZEJKBXGSP_ELzBW5FBIJ9YEZIn3i-cMSNwhNDsI.jpg?auto=webp&s=5557f798b445911e92d3b26a2c4bc5eef9609051
Billionaire investor Ken Griffin has warned that there will be a recession in the US and said the Federal Reserve needs to do more to bring down inflation, days after the central bank increased its benchmark rate by 0.75 percentage points for the third time in a row.
“Everybody likes to forecast recessions and there will be one,” he said at CNBC’s Delivering Alpha conference in New York on Wednesday. “It’s just a question of when, and frankly, how hard.” A recession could happen as soon as next year, he added.
The founder of hedge fund Citadel and market maker Citadel Securities said increasing interest rates was an “awkward tool” to cool the economy but acknowledged the Fed was limited in what it could do to curb inflation.
Griffin joins a growing chorus of voices predicting pain for the US economy, including Fed chair Jay Powell, who last week said there was not a “painless way” to bring inflation under control.
Despite the gloomy outlook, Griffin said the Fed needed to stick with its campaign to tighten monetary policy. “We should continue on the path that we’re on to make sure that we re-anchor inflation expectations,” he said, so people do not start to treat inflation of 5 or 6 per cent as the norm.
Earlier on Wednesday, Stanley Druckenmiller, a veteran of the hedge fund industry, adopted an even gloomier stance. “We are in deep trouble,” he said, adding that he would be “stunned” if the US does not tip into a recession next year.
Griffin drew a distinction between the US and Europe, which he believes could already be in a recession because of high gas prices.
He said former president Donald Trump had tried to wean the continent off of its dependency on Russian oil.
“Europe was willing to trust Russia as its fundamental provider of energy,” Griffin said. “In fact when it came to Nord Stream the whole point that President Trump had about ‘no to Nord Stream’ was trying to reduce European dependency upon the Russians for energy. And guess what? \[He\] was right.”
Griffin’s hedge fund has been among the best performing in the industry this year, with the flagship multi-strategy Wellington fund up more than 28 per cent in 2022, according to a source familiar with the firm.
Source: [https://www.ft.com/content/276c1364-c312-4ad8-8b76-31f4d25dfa5f](https://www.ft.com/content/276c1364-c312-4ad8-8b76-31f4d25dfa5f)
Citadel’s Ken Griffin predicts a US recession could happen as soon as next year. As the Fed is expected to raise interest rates, do you think the US will be in a recession next year?
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You can’t predict a thing that is currently already happening. What a colossal dumbass.
When you got a lot of “sold not yet purchased“ on your books, you need people to sell. Simple.
Dude hopes people will sell gme , get fkt
If the whole point of the rate increases is “to re-anchor people from expecting 5-6%,” but inflation stays above that rate bc a lot of this is due to either random world events (Ukraine war) or structural problems (net negative workforce hangover from covid, decades of insufficient housing building), neither of which the fed has much of any impact on, will people’s expectations change or is the pain for nothing? I guess you could argue it’s to keep it from getting WORSE, but it seems like a solution poorly matched to the actual underlying causes of the problem
What a fucktard. We are already in recession you fool
Didn’t a bunch of regards predict this a year or 2 ago?
That’s because he caused the recession by naked shorting US treasuries.
Reuters: “China’s central bank has asked major state-owned banks to be prepared to sell dollars for the local unit in offshore markets as it steps up efforts to stem the yuan’s descent, four sources with knowledge of the matter said.
State banks were told to ask their offshore branches, including those based in Hong Kong, New York and London, to review their holdings of the offshore yuan and ensure U.S. dollar reserves are ready to be deployed, three of the sources, who declined to be identified, told Reuters.”
You have not seen USD inflation yet.
Secret…we are in a recession
It’s already here
I understand him. More dark pools, that we can put everything from the rezession inside. Nobody will see it.
So this means stocks will soon go to the moon
Everyone has being crying wolf for a year now, shut up you’ll stay poor no matter what