Billionaire Wall Street titan Ken Griffin believes the total impact of tariffs on inflation haven’t been felt but, and he solely sees one more price reduce from the Federal Reserve this yr. The founder and CEO of Citadel stated Thursday solely about half of the inflationary impact from President Donald Trump’s wide-spreading levies on U.S. buying and selling companions has handed via the economic system. As a consequence, the investor solely expects average easing from the central financial institution. “The inflationary impulse from tariffs has only passed about 50% through the economy at this point. It’s still coming,” Griffin informed Sara Eisen on CNBC’s ” Money Movers .” “The consumer’s going to pay…. I would not underestimate how grating a 3% inflation rate could be to tens of millions of American households.” Tariffs can stoke inflation as a result of they enhance the price of imported items, and people prices typically get handed alongside to customers. Griffin estimated that inflation subsequent yr will be within the mid-2% to three% vary, above the long term 2% goal of the Fed. Last week, the Fed permitted its first price reduce of the yr on the again of slower job progress and signaled two more coming for the rest of 2025. Still, decrease job progress and better inflation are in battle with the Fed’s twin targets of steady costs and full employment. The billionaire sees just one more quarter-point reduce this yr. He did put an out of doors probability at a 3rd Fed reduce this yr. Let Fed do its job The central financial institution has additionally been a goal of criticism from Trump, who has been pushing for drastically decrease rates of interest to bolster the economic system. Trump’s hectoring of the Fed, appointment of his advisor Stephen Miran and tried firing of Fed Governor Lisa Cook have raised questions over the standard independence the central financial institution has had from political affect. Griffin careworn that it is essential for the Fed to keep up its independence whereas making an attempt to navigate the intense financial uncertainty. “If I were the president, I would let the Fed do their job, and I would let the Fed have as much perceived and real independence as possible, because the Fed often has to make choices that are pretty painful to make,” he stated. “If the president’s perceived as being control of the Fed, then what happens when those painful choices have to be made?”