Billionaire GOP Donor Warns Donald Trump Against Playing This Very ‘Risky Game’
Billionaire hedge fund manager Ken Griffin, who is estimated to be worth more than \$40 billion, has issued a stark warning about Donald Trump’s ongoing efforts to pressure the Federal Reserve.
Griffin, who leads the investment giant Citadel, co-authored an opinion piece in The Wall Street Journal with economist Anil Kashyap of the University of Chicago, where the two argued that Trump’s attacks on the central bank could create serious economic problems that might ultimately backfire on his presidency.
They explained that Trump’s strategy of openly criticizing the Fed, talking about firing governors, and pushing for looser policies that tolerate higher inflation comes with major risks.
According to them, Trump’s push to gain greater control over the Fed so he can force interest rates lower is a dangerous gamble. They compared it to former President Richard Nixon’s actions in the 1970s, when political pressure on the Fed led to spiraling inflation that haunted the U.S. economy for years.
Griffin and Kashyap warned that the credibility of the Federal Reserve depends on its independence. If the Fed appears to bend to political demands, it could spark widespread inflation. In their words, the “worst-case scenario” would mean millions of retired Americans seeing their life savings shrink in value. Beyond the economic damage, they added, such an outcome could also hurt Trump politically, especially in the midterm elections, where angry retirees and voters facing higher prices could turn against him.
They also emphasized that trust in economic policymaking is built gradually over time, through stability and respect for established processes, but it can collapse quickly if those processes are ignored or undermined. Once lost, credibility is difficult to rebuild.
Griffin is not the only prominent economist raising alarms. Nobel Prize–winning economist Paul Krugman has repeatedly cautioned against Trump’s push to dominate the Fed. This week, Krugman said Trump seems to treat lower interest rates as a kind of personal trophy, comparing it to winning a golf tournament, rather than recognizing the broader consequences. Krugman added that while Trump may believe slashing short-term rates could boost his popularity, it would more likely trigger inflation and drive long-term rates higher, worsening the very economic problems he hopes to avoid.
The growing warnings highlight how attempts to bend the Fed to political will may seem appealing in the short term but could carry enormous costs for both the economy and Trump’s political future.
