Ken Griffin has a warning for Trump and the GOP: “ I would not underestimate how an inflation rate of 3% could be ”

Inflation fell a lot from 9% in 2022 to 2.9% in the latest report in the Government IPC. The prices of the basic PCE, the favorite inflation gauge of the Fed, increased by 2.9% in August, corresponding to the ascent of July.

But inflation has been sticky as the prices set up, and Griffin predicts that inflation will continue to be between 2% and 3% next year, always greater than the target target of the Fed.

“American voters were exhausted from inflation,” he told CNBC on Thursday.

In 2024, the high cost of life was a focal point in Trump’s re -election campaign, and inflation of the Biden era injured the Democrats. They lost the White House and Congress, while Trump won the seven swing states.

Many voters have blamed democratic policies – including recovery expenses – for sustained and high costs, exit polls found.

“There is no doubt that the president and the Republicans came in power on the back of frustration in the face of inflation,” said Griffin. “I would not underestimate how the network of an inflation rate of 3% could be tens of millions of American households.”

Inflation could appear strongly in the mid-term elections next year, while the Republican party seeks to defend close majorities in the Chamber and the Senate. And voters hide on Trump’s economy.

A recent Reuters / Ipsos survey has shown only 28% of approved respondents of Trump management of their cost of living. A Yougov / Economist survey has put Trump’s approval rating on the economy at a hollow of 35%.

An affordability indicator was a thorn on the side of Trump: high mortgage rates. However, as Trump turns to the Fed for the relief of the owner, many are worried about political influence on the independent organization.

Trump was recently criticized for putting pressure on the federal reserve and threatening his independence. Critics argue that his efforts to appoint Loyalists to the Fed, public calls to reduce interest rates and attempts to withdraw an in -office represent a clear decision to influence monetary policy for political ends.

Griffin said that the Fed independence would be in the interest of Trump.

“If I were the president, I would let the Fed do his job,” he said. “I would let the Fed have as much independence perceived and real as possible, because the Fed must often make fairly painful choices to make.”

The Federal Open Market Committee has reduced interest rates by a quarter of a hundred earlier this month to cause a slowdown in the labor market. This decision comes after months of continuous pressure from the Trump administration on the president of the Fed, Jerome Powell and other members of the Committee to reduce rates.

However, President Donald Trump has talked more about reducing rates, even if this decision will probably risk price increases.

Griffin warned that the erosion of the independence of the Fed could lead the Americans to confuse the White House and the Central Bank.

“If the president is perceived to be in control of the Fed, what happens when these painful choices must be made?”

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