Billionaire Wall Street’s Titan Ken Griffin believes the full impact of tariffs on inflation is yet to be felt, and he believes another fee has been cut from the Federal Reserve this year. Citadel founder and CEO said Thursday that there was only about half of the impact of President Donald Trump’s widespread taxation on US trading partners. As a result, investors are only looking for moderate easing from the central bank. “The inflationary impulse from tariffs has only passed around 50% through the economy at this point, and it’s still coming,” Griffin told Sarah Eisen about CNBC’s “money mover.” “Consumers are going to pay…. I don’t underestimate how they will fight 3% inflation rates with tens of millions of American households.” Tariffs can blow out inflation as they increase the costs of imported goods, and these costs are often passed on to consumers. Griffin estimated that inflation next year will range from 2% to 3%, above the Fed’s long-term 2% target. Last week, the Fed approved a year-long cut this year against the backdrop of slow employment growth, marking two more for the remainder of 2025. The billionaires have only seen one more quarter point cut this year. He gave him an outside chance this year with his third Fed cut. The federal government is also the target of criticism from Trump, who has pushed dramatically lower interest rates by central banks to strengthen the economy. Trump’s appointment of federal government Hector, his advisor Stephen Milan, and his attempts to fire federal government Gov. Lisa Cook raised questions about the traditional independence that central banks had from political influence. Griffin emphasized that it is important for the Fed to maintain independence while attempting to navigate extreme economic uncertainties. “If I were the president, I would have the Fed do my job and give the Fed as much awareness and real independence as possible. “If the president is perceived as controlling the Fed, what happens if he has to make these painful choices?”
