Ken Griffin

But the goods deflation that we've enjoyed from globalization is over.

Supply chains are being re-architected.

Manufacturing is being moved into higher cost jurisdictions.

That's going to end the goods deflation that's been the theme of our lifetime.

And with that, you have more pressure on services inflation and the cost of housing flowing through the inflationary picture that American households face.

I don't think we're actually looking at a scenario like that.

I think you're looking at higher bond yields as a possibility, but remember, the easy money will fuel the stock market boom.

There's two different investor communities here, and the stock market investors, when they see lower interest rates, bid up for stocks.

That's just the propensity of that community, is easy money means higher prices.

Look, I think the most important move the president and the incoming Fed chairman can make, or chairwoman as the case may be, is to separate the

is to create distance between the White House and the Fed.

Because the most difficult job the Fed has is the job of raising rates to combat inflation, which can result in higher unemployment.

It's a politically unpopular decision to have to make,

The White House having distance from the Fed gives the Fed more latitude to make the tough calls you need to make to protect the long-term stability of the dollar and to protect the long-term interest of the economy.

And sometimes the long-term interest of the economy involves short-term pain and misery.

Volcker experienced this back when he was Fed chairman.

This is a real issue.

And when the White House...

usurps control of the Fed, even if they don't actually have it as a practical matter, if they're perceived to control the Fed...

then if inflation rears its ugly head, the president can't blame the chair of the Fed.