Global Hedge Fund Leader Citadel's Ken Griffin: The Fed is in a No-Win Situation

15 September 2023

Griffin highlighted the U.S. government’s continued reliance on significant fiscal deficits to boost the economy, foreseeing increased future fiscal burdens. This approach places Fed Chairman Powell in a no-win situation. The White House is still throwing money at stimulating the economy. The projected U.S. fiscal deficit was 3% of GDP for the year, but it now approaches 6%. With forecasts suggesting a near 5% deficit in coming years, market jitters are increasing due to the unsustainable nature of such deficits. Griffin suggests that these economic challenges will negatively impact the stock market.

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