(Reuters) -Citadel CEO Ken Griffin expects the U.S. Federal Reserve to cut curiosity rates one more time this yr, he stated on Thursday in a CNBC interview.
“I think the Fed is nervous about the labor market because we did see this decline in the number of jobs being created, and in terms of balance of risks they chose to focus on the unemployment side rather than on the inflation side,” Griffin stated.
He added that he expects the Fed to cut curiosity rates one more time this yr, “two on the outside.”
Fed Chair Jerome Powell stated the central financial institution faces a troublesome stability, with the danger of quicker inflation on one facet and slowing job development on the opposite, whereas giving little indication of the timing of the following price cut.
The U.S. Federal Reserve diminished curiosity rates by 25 foundation factors final week, its first cut since December, and indicated more cuts would observe to halt any slide in the labor market.
However, in the interview Griffin stated he expects inflation to be in the mid-2% to 3% vary subsequent yr, above the long-run “historical target of 2%.”
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Alan Barona)