Griffin criticized that the halls in Washington are now filled with special interest groups and lobbyists seeking to raise tariffs to block foreign competition and protect inefficient American companies that cannot meet the needs of usa consumers.
Following the previous criticism of Trump's tariffs and immigration policies, Citadel founder Ken Griffin, the 'king of hedge funds', criticized Trump's tariffs for leading the USA down the path of 'crony capitalism'.
On Thursday local time, Griffin warned during an interview with the Economic Club of New York that Trump's plan to raise tariffs would cause the USA to 'slide into crony capitalism', and he severely criticized other aspects of Trump's agenda.
It is now evident that the halls of Washington are crowded with special interest groups and lobbyists, seeking to raise tariffs to curb foreign competition and protect inefficient American companies that cannot meet the demands of USA consumers.
Griffin also expressed concerns about inflation:
"Seriously worried" that Trump's plans for tariffs and immigration restrictions will place huge inflationary pressures on the USA economy.
Griffin further stated a concern about the risks of the immigration issue going too far under Trump's leadership. He pointed out that many leading companies in Silicon Valley were founded by immigrants, and European leaders recently complained to him that the smartest talents in Europe, particularly in the field of ai, have moved to the USA, stressing that borders must be opened to the best and brightest talents.
It is worth mentioning that Griffin is a major donor to the Republican Party, but he publicly opposes Trump and supports Mark Rowan, the founder of apollo global management, for the highly contested position of Treasury Secretary.
Griffin also mentioned for the first time:
Considering the possibility of selling a minority stake in the company. Citadel "just a few days ago" received an investment proposal of $5 billion from a private equity firm, this dynamic will help Citadel maintain a longer non-public status.
Griffin founded Citadel in 1990, and the company has since developed into the most profitable investment firm in industry history. Griffin owns the vast majority of shares in Citadel, which has never previously accepted external investment.
Just weeks before he made the above remarks, an article by Wall Street Journals stated that Citadel's main competitor, Millennium Fund, was seeking strategic cooperation with BlackRock, the world's largest asset management company.
In addition, Griffin stated that the multi-manager sector is the most profitable area in the global hedge fund industry, which is currently in a "consolidation phase" and may experience growth again in the future.
