Griffin Says Peace Dividend Over, High Inflation to Last Decades

November 09, 2023

by Lulu Yilun Chen and Low De Wei Yahoo! Finance, Canada

(Bloomberg) — Citadel founder Ken Griffin said the world is facing unrest and structural changes that are pushing it toward de-globalization and causing higher baseline inflation that may last “for decades.”

“The peace dividend is clearly at the end of the road,” Griffin said at the Bloomberg New Economy Forum on Thursday in Singapore, referencing the Russia-Ukraine and Israel-Hamas wars. “We are likely to see higher real rates and we’re likely to see higher nominal rates.”

The billionaire said that will have implications on the cost of funding the US deficit, saying the government hadn’t counted on higher rates “when we went on the spending spree that created a $33 trillion deficit.”

Griffin added that US fiscal spending needs to be put in order, as the country is “spending on the government level like a drunken sailor.”