Citadel CEO warns US retirees may pay ‘steep’ price for Trump’s Fed attacks. How to protect your nest egg

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Ken Griffin, the billionaire founder and CEO of hedge fund Citadel, is one of the Republican Party’s top donors. Yet his latest criticism of US President Donald Trump is extremely sharp.

In a Wall Street Journal op-ed in the fall, Griffin criticized Trump’s attacks on the Federal Reserve and warned that such pressure could have dire economic consequences (1).

“The president’s strategy of publicly criticizing the Fed, suggesting firing governors, and pressuring the central bank to take a more accommodative stance toward inflation comes with steep costs,” Griffin wrote with Anil Kashyap, an economics professor at the University of Chicago.

The Fed, tasked with maximizing employment and keeping prices stable, recently reduced its benchmark rate by 25 basis points and has hinted at two more cuts this year. Nevertheless, it added, “Inflation has increased and remains somewhat high (2).”

Griffin argued that it is in Trump’s “best interest” to let the Fed act independently so it can make the tough decisions needed to control inflation. He warned that weakening that independence risks serious economic damage — and could damage the GOP politically.

“In a worst-case scenario, if the Fed clearly bows to political pressure and allows inflation to grow unchecked, millions of retired Americans would see their savings dwindled,” they wrote.

“Senior voters – tired of bearing the brunt of inflation – may end up paying a heavy price for the administration in the medium term.”

Despite this criticism, Griffin was one of the Wall Street moguls present at a private dinner hosted by the President for the nation’s financial leaders on November 11. It’s unclear whether Citadel’s CEO was able to address his concerns with Trump directly.

Other financial experts are also warning of serious consequences for interfering with Fed autonomy. Economists are concerned that White House intervention could push interest rates dangerously low, leading to a decline in economic growth. This could result in skyrocketing inflation, huge stock market losses, and very high interest rates over the long term. European Central Bank President Christine Lagarde has also warned that Trump’s attacks on the Fed’s independence pose a “very serious threat” to the global economy (3).

The reality that inflation destroys the purchasing power of money is already eating away at Americans’ savings. Over the past five years, the US Consumer Price Index has jumped 25% (4). And in retrospect it seems even more dire: According to the Federal Reserve Bank of Minneapolis, $100 in 2025 will buy as much as just $12.05 in 1970 (5).

Good news? Savvy investors have long been turning to certain assets to help protect their money from the bite of inflation – regardless of how well the Fed does its job.

Gold has helped people keep their wealth safe for thousands of years. Today, its appeal is simple: unlike fiat currencies, the yellow metal cannot be printed at will by central banks.

It is also widely considered to be the ultimate safe haven. Gold is not tied to any one country, currency or economy, and in times of economic turmoil or geopolitical uncertainty, investors often gravitate towards it – causing prices to rise.

Over the past 12 months, the price of the precious metal has increased by more than 35%.

Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, has repeatedly stressed the importance of gold in a flexible portfolio.

“People generally don’t have a significant amount of gold in their portfolio,” he told CNBC earlier this year. “When bad times come, gold is a very effective diversifier.”

A gold IRA is one option for building your retirement fund with an inflation-hedging asset.

Opening a gold IRA with Goldco allows you to invest in physical gold and other precious metals while also providing the significant tax benefits of an IRA.

With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match 10% of eligible purchases with free silver.

If you want to know if this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.

Read More: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)

Gold is not the only asset that investors rely on to maintain their purchasing power. Real estate has also proven to be a powerful hedge.

When inflation increases, property values ​​often also increase, reflecting the higher costs of materials, labor, and land. At the same time, rental income increases, providing landlords with a revenue stream that is adjusted for inflation.

Over the past five years, the S&P Cautality Case-Shiller US National Home Price NSA Index has increased by more than 50%, reflecting strong demand and limited housing supply (6).

Of course, higher home prices can make buying a home more challenging, especially when mortgage rates are still high. And being a landlord isn’t exactly an easy job – managing tenants, maintenance and repairs can quickly eat up your time (and returns).

Good news? Investing in real estate today doesn’t require you to buy property outright or deal with leaky faucets. Crowdfunding platforms like Arrived provide an easy way to get investment in this income-generating asset class.

Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in rental home shares for as little as $100 — all without the hassle of mowing the lawn, fixing leaky faucets, or handling difficult tenants.

The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find the property you like, select the number of shares you want to buy and then sit back and relax as you start receiving positive rental income distributions from your investment.

Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolios through grocery-based commercial properties without taking on the responsibility of being a landlord.

With a minimum investment of $50,000, investors can be a part of properties leased by national brands like Whole Foods, Kroger and Walmart that provide essential goods to their communities. Thanks to triple net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.

Simply answer a few questions – including how much you want to invest – to start browsing the full list of available properties.

We only rely on verified sources and reliable third-party reporting. For details, see our Editorial ethics and guidelines,

Wall Street Journal (1); Federal Reserve (2); International Banker (3); Federal Reserve Bank of St. Louis (4); Federal Reserve Bank of Minneapolis (5); S&P Global (6)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.