Ken Griffin, CEO of hedge fund giant Citadel, has urged US President Donald Trump to ensure the Federal Reserve remains independent from the White House, amid speculation over who will succeed Jay Powell as Fed chair next May, according to a report by the Financial Times.
Speaking at an event in Paris, Griffin said the “most important move the president and the incoming Fed chairman can make is to create distance between the White House and the Fed.” While declining to endorse any candidate, he stressed the importance of market confidence and effective inflation management.
The comments come as Kevin Hassett, a former White House economic adviser, emerged as a frontrunner to replace Powell, though his chances have reportedly been tempered by concerns on Wall Street that he might not act independently of Trump. JPMorgan CEO Jamie Dimon has suggested that former Fed governor Kevin Warsh would be a strong alternative.
Griffin, whose Citadel manages one of the world’s largest hedge funds and market-making operations, has previously criticised Trump’s tariff policies. While a long-time Republican donor, he stopped short of endorsing Trump in the last presidential election.
Griffin’s remarks reflect broader investor concern over the Fed’s autonomy, as Trump reportedly favours aggressive interest rate cuts, even as inflation remains above the central bank’s 2% target. The Fed has already cut rates three times this year, with the benchmark federal funds rate now at a three-year low of 3.5-3.75%.
Griffin highlighted the need for policy decisions that provide “global markets, the American investment public, and consumers the greatest peace of mind,” emphasising that Fed independence is crucial to maintaining confidence in the US economy.
