'Hedge Fund Tycoon' Griffin: "US Fed to Cut Interest Rates in September or December"

Interest Rate to Drop Within the Year... "Hesitation Due to US Presidential Election"

Kenneth Griffin, founder and CEO of the US hedge fund Citadel, predicted that the Federal Reserve (Fed) will cut interest rates in either September or December this year.

On the 6th (local time) at the Milken Global Conference held in Los Angeles, Griffin said, "It is uncertain when the Fed will cut interest rates this year, but if they do not cut rates in September, it is highly likely they will do so in December." He believes that although the Fed is approaching rate cuts cautiously, it will lower rates within the year.

Ken Griffin, founder and CEO of Citadel, is sharing his outlook on interest rate hikes at the Milken Global Conference on the 6th (local time).
[Image source=EPA Yonhap News]

However, he added, "There remains doubt as to whether inflation will have sufficiently decreased by then," noting, "Wage growth and core inflation are entrenched, and deglobalization is occurring. This marks a departure from the persistent deflationary trend we have experienced."

Factors making a rapid Fed rate cut difficult include intensified inflation in the service sector and the US presidential election in November. Although inflation may decline ahead of the election, cutting rates could be interpreted as a political move. Griffin predicted that in such a case, the Fed would postpone rate cuts until December.

He said, "From a big-picture perspective, hesitating to cut rates is the right decision." Griffin had also stated in March that the Fed should lower rates gradually.

Regarding how interest rate uncertainty and the artificial intelligence (AI) boom might affect the stock market, he said, "AI has truly changed the mindset of the US economy," adding, "AI has begun to improve productivity, and the US economy is growing."

Ahead of the US presidential election in November, Griffin did not express support for either President Joe Biden or former President Donald Trump. However, he said, "They are really good," about individuals who were mentioned in the Trump administration. Griffin is known to have supported former UN Ambassador Nikki Haley, who was eliminated in the Republican primary after losing to former President Trump.

This content was produced with the assistance of AI translation services.