By Carolina Mandl
NEW YORK, March 7 (Reuters) - Billionaire investor Ken
Griffin, the founder of Citadel and Citadel Securities, said on
Tuesday the Federal Reserve needs more consistency of
communication in order to tame inflation and that the setup for
a recession is unfolding.
"If I could tell one thing to the (Fed) chairman, I would
tell him to say less. I would just write a message: we're going
to put the inflation genie back in the bottle," Griffin said in
a televised interview with Bloomberg.
Earlier on Tuesday, Fed chair Jerome Powell said the Fed
will likely need to raise interest rates more than expected to
control inflation. Previously, some market participants have at
some points read Fed official's speeches as less hawkish.
"I really believe consistency of messaging is so important
because part of how the Fed gets the job done is the perception
of the American public that they can get the job done," Griffin
said. He believes the Fed will increase interest rates to around
5.5% to tame inflation.
Still, the billionaire said the setup for a recession is
unfolding, as late this year or next year the "pandemic orgy" of
spending will come to an end.
Griffin expressed some concerns about the impact of a long
debate about the debt ceiling until a final deal is made, but
said common ground will be reached. "I do think it'll be market
volatility that will drive that compromise."
He said Citadel is currently negotiating an enterprise-wide
license to use artificial intellengence tool ChatGPT to help its
developers write better code, translate software between
languages and analyze information.
(Reporting by Carolina Mandl, in New York; Editing by Lincoln
Feast)
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