Billionaire hedge-fund manager Ken Griffin has expressed skepticism about Elon Musk’s ability to cut trillions from the federal budget, citing the need for changes to entitlements. As a close advisor to President-elect Donald Trump and co-leader of the proposed Department of Government Efficiency (DOGE), Musk has called for significant cuts in spending.
Griffin believes that making such cuts without changing entitlement programs would be “very politically unpopular.” He hopes that the Federal Reserve will remain independent to make decisions that are unpopular with politicians. The billionaire also expressed skepticism about Trump’s aggressive economic policies, including tariffs on countries like Brazil and Russia.
However, Griffin remains optimistic about the US economy, stating that America is “open for business” and that corporate America is “smiling from ear-to-ear.” He attributes this to a reduction in regulation and believes that smaller funds and individual investors still have a place in the industry.
Griffin’s firm, Citadel, has seen strong returns, with its flagship Wellington fund returning 1.8% in November. Despite new competitors emerging in the investment industry, Griffin remains confident that entrepreneurs can find ways to succeed.
Source: https://www.businessinsider.com/ken-griffin-doubts-elon-musk-cut-trillions-federal-budget-solo-2024-12