Ken Griffin, head of hedge-fund manager Citadel, said higher baseline inflation may go on for decades, citing structural changes that are pushing the world toward de-globalization.
- there are multiple trends “that are pushing us toward de-globalization”
- Griffin referred to an end to the “peace dividend”
- “We are likely to see higher real rates and we’re likely to see higher nominal rates.”
Griffin was speaking at a Bloomberg forum in Singapore on Thursday. More:
- higher inflation will increase the cost of funding the US deficit (higher interest rates are something the government hadn’t planned on)
- US is “spending on the government level like a drunken sailor”, current fiscal situation is unsustainable