Citadel Founder and CEO Ken Griffin shared his insights on the ongoing war, inflation, and the potential political repercussions in the upcoming midterm elections.

In an interview with CNBC on Tuesday, Griffin commended President Donald Trump‘s handling of the Iran war, stating it has played a crucial role in curbing Iran’s nuclear ambitions. However, he criticized the president for failing to effectively convey the significance of these actions to the Americans.

The Citadel CEO also warned that war could worsen economic conditions and impact the midterm elections, considering the public’s increasing dissatisfaction with inflation.

Calling inflation a “long journey” of six years, Griffin pointed out the high inflation rates during the Biden administration, which he believes have substantially eroded the purchasing power of Americans, particularly retirees and those with fixed savings.

He expressed concern that the current president, Trump, is being “disproportionately blamed” for the inflation issues that originated due to the economic policies of Biden’s administration. “…the story of which was really written during the pandemic days of the Biden administration,” Griffin said.

Despite these challenges, Griffin maintains a positive outlook, noting that inflation is not significantly accelerating at this time and that American companies continue to increase their profits.

Past Griffin-Trump Clash

Griffin’s comments come in the wake of his previous criticisms of Trump’s policies. In September, Griffin publicly condemned Trump’s tariff policy as “anti-American,” favoring “the big and the connected.” This was a significant shift for Griffin, who was once a supporter of Trump and a prominent GOP donor.

Later that same month, Trump publicly disagreed with Griffin’s criticism of his handling of the Federal Reserve. Trump argued that the Fed should have raised rates earlier in 2021 and called for a change in the organization’s operations.

Dimon Warns Of Bond Risks, Stagflation

The Personal Consumption Expenditures (PCE) price index climbed 3.5% year over year in March, up from 2.8% in February and matching expectations.

The 5-year breakeven inflation rate, a closely watched Wall Street measure of expected inflation over the next five years, rose to 2.72% on Tuesday, its highest since August 2022, while the 10-year breakeven reached 2.50%, the highest since March 2023.

Jamie Dimon, CEO of JPMorgan Chase & Co. (NYSE:JPM), warned that rising government deficits and persistent inflation could lead to a bond crisis and potentially stagflation, adding that markets may be underestimating risks from heavy spending, global re-militarization, and infrastructure demands.

Meanwhile, New York Fed President John Williams said tariff-driven inflation should fade in the coming quarters as current price impacts run their course, but warned that new tariffs could push import prices higher again.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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