Citadel CEO Ken Griffin on Tuesday urged President Trump to prioritize creating “distance” between himself and the Federal Reserve with his pick for chairman.
The hedge fund billionaire shared his advice amid concerns that Trump’s pick to replace Fed Chair Jerome Powell – a neck-and-neck race between economic adviser Kevin Hassett and former Fed Governor Kevin Warsh – could be too closely tied to the Oval Office.
“The most important move the president and the incoming Fed chairman can make…is to create distance between the White House and the Fed,” Griffin said during an event in Paris after he was asked whether Hassett should be chosen for the role.
Griffin declined to endorse a specific candidate, saying he didn’t think “throwing” his pick in the mix “helps to add anything to the argument or decision at hand.”
“The president will hopefully make a decision from the perspective of who will give the global markets and the American investment public and the consumer the greatest peace of mind that we will manage inflation in America,” he added.
Hassett, currently director of the National Economic Council, has served in both Trump administrations and emerged as the frontrunner to lead the Fed last month, Bloomberg reported.
But Wall Street titans, corporate CEOs and money managers have been urging the president not to pick Hassett – concerned he will simply do Trump’s bidding instead of following trends in the bond markets, The Post previously reported.
While Hassett last month held a large lead on prediction markets betting on the next Fed chairman, it briefly changed hands with Warsh after Trump told the Wall Street Journal last week that Warsh had shot to the top of his list.
“I think you have Kevin and Kevin. They’re both – I think the two Kevins are great,” Trump said.
JPMorgan Chase CEO Jamie Dimon, meanwhile, hinted last week that he was rooting for Warsh, who served as a Fed governor from 2006 to 2011.
Griffin has long been a major GOP donor, though he didn’t endorse Trump during his 2020 presidential campaign and criticized his tariff proposals last year.
But Griffin was also among the dozen or so Wall Street bigwigs who attended an exclusive dinner at the White House last month.
On Tuesday, Griffin said Trump had been very attentive to input from business leaders during a recent meeting on how to tackle affordability issues, which have become a top concern for voters ahead of next year’s midterm elections.
“It’s ironic how the tables have turned,” Griffin said, discussing how Dems have shot ahead in midterm polling – adding that Republicans are struggling with the “pro-inflationary” reality of their policies.
Trump has claimed both Hassett and Warsh would cut interest rates if they were chosen to replace Powell, who he has long railed against for not slashing rates quickly enough.
The Federal Reserve has slashed interest rates by a quarter point three times this year, down to a three-year low of 3.5% to 3.75%.
But the president has pushed for rates as low as 1%, even as inflation remains stubbornly above the central bank’s 2% goal – hitting 3% in September, according to the most recently available Consumer Price Index.
Hassett has been making his case for the job amid concerns he could be too close to the president, telling CNBC on Tuesday that the Fed’s “independence is really, really important.”
He added that he doesn’t believe Trump will disqualify candidates for being “a close friend.”
Hassett told CBS’ “Face the Nation” that Trump’s opinion “would have no weight” in his decisions as chairman – though he said he believes Trump has “very strong and well-founded views about what we ought to do” that he would potentially bring to the committee.
