Financial analyst Gordon Johnson issued a stark warning on X, accusing the Federal Reserve of “grossly negligent” behavior in failing to curb inflation. He said rising costs are pushing Americans to the brink, stating that people “can no longer afford life” — a situation he warns could lead to social unrest.
Supporting Johnson’s concern, Citadel CEO Ken Griffin recently noted that inflation remains “substantially above target” and is expected to remain high into next year. He warned that U.S. monetary and fiscal policy is creating “a very pro-inflationary environment.”
Historic Currency Depreciation
The Citadel chief stated during a conference interview on a Bloomberg podcast that persistent inflation is driving currency weakness. “It’s part of the reason the dollar is depreciated by about 10% in the first half of this year,” he said.
“The single biggest decline in the U.S. dollar in six months in 50 years,” Griffin said, referring to the recent drop in the currency’s value.
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He further pointed out that gold has hit record highs and gains in other dollar substitutes signal growing investor concern.
The Kobeissi Letter cited Apollo Global Management (NYSE:APO) data last week showing every 10% dollar drop adds 30 basis points to inflation.
Markets Operating On ‘Sugar High’
The billionaire hedge fund manager described the current economic conditions as being on “a bit of a sugar high.”
Griffin said the U.S. is using fiscal and monetary stimulus “that you would expect to see in the middle of a recession,” despite the economy being near full employment.
Tariffs Fuel Inflation
Echoing inflation concerns, Anthony Scaramucci wrote in an X post that tariffs are contributing to inflation, even as business demand weakens and consumers are “sheltering in place.”
Griffin also noted that foreign investors are now hedging their returns back into local currencies when investing in U.S. equities.
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