Citadel's Ken Griffin Just Said the Quiet Part Out Loud About Inflation -- and Wall Street Isn't Going to Like It

Citadel founder Ken Griffin warned that persistent above-target inflation and a strengthening labor market could prompt the Federal Reserve to raise rates, threatening the AI-driven rally that has pushed major U.S. indexes to record highs. Griffin made the comments on May 5 at the Milken Conference; the piece highlights how President Trump’s policies and the Iran-driven shock to oil supply (about 20% of global crude through the Strait of Hormuz) have lifted inflation. Cleveland Fed nowcasts project TTM inflation to rise to 3.56% in April and 3.74% in May, removing near-term rate-cut expectations and increasing the risk that higher rates could undermine the S&P 500’s lofty valuation.