Additional Coverage:
- Citadel founder Ken Griffin says it’s ‘preposterous’ for Elon Musk to shoulder the ‘entire burden’ of cutting the budget (newsbreak.com)
Billionaire Ken Griffin, founder of Citadel, has expressed skepticism about Elon Musk’s ability to drastically cut the federal budget as proposed by President-elect Donald Trump. Griffin believes entitlement reform is essential for such significant cuts.
Griffin suggests that cutting the budget without addressing entitlements would face significant political opposition. He also raised concerns about the bond market becoming unstable if spending is not controlled.
Despite his doubts about Musk’s ability to carry the full responsibility, Griffin praised his entrepreneurial skills. Griffin also expressed confidence in the independence of the Federal Reserve to make unpopular but necessary decisions.
Regarding Trump’s proposed tariffs, Griffin predicted that they would not be implemented as they are often used as negotiating tactics in real estate transactions. He emphasized that America remains open for business and that executives are optimistic about the future.
Griffin acknowledged the challenges facing smaller investment funds and individual investors, but believes that entrepreneurs will find ways to succeed despite the dominance of established firms like Citadel.