Citadel Chief Thinks The Federal Reserve Might Not Raise Interest Rates In 2015

Interest rates have been the main topic of conversation in the investment world for most of 2015. Many investors say the Federal Reserve Board would be crazy to raise interest rates in 2015 because the U.S. economy and economies around the world are slowing down. Some economies are in serious trouble, and investors say an interest rate hike could cripple those countries economically speaking. But not all investors think an interest rate hike would hurt the world’s economy. Some investors like billionaire Ken Griffin think a slight interest rate hike could help stimulate business and investment interest, but he doubts that will happen in 2015. Ken Griffin is known as an investor that doesn’t follow traditional investment strategies, His company, Citadel LLC, is one of the giants in the hedge fund world. Citadel and Griffin reached that giant status by investing in risky assets. The assets that other hedge fund firms said were losers. Griffin hasn’t been called a loser very often, but there was one segment of his life when it looked like that description fit him. When the 2008 meltdown ripped a hole in Wall Street, Griffin and his company fell into that hole. Griffin lost his investments, and Citadel was ready to close its hedge fund doors. Ken Griffin found himself in a very difficult position, and he was all alone. His limited partners wanted to jump ship and other hedge fund managers distanced themselves from him. Griffin didn’t give up. In typical Ken Griffin fashion, he found money to invest again. Investing was in his blood. He started investing when he was a student at Harvard, and he hasn’t stopped since then. Griffin picked some very risky investments back then, and they paid off. Within six years, Griffin and Citadel were the darlings of the hedge fund world once again. Citadel is one of the top hedge fund companies in the world and Ken Griffin is a billionaire. Griffin recently said that the United States dollar index rose 1 percent after the Federal Open Market Committee meeting. The Feds didn’t raise rates at that meeting. They remained unchanged at 0 percent -0.25 percent. But the Feds did say that a rate increase was coming, and it would be before the end of the year if the economy showed signs of strength. But, according to Mr. Griffin, the U.S. is showing signs of weakness. The latest figure is a GDP of a little more than 1 percent. That is half of what it was in the beginning of 2015. If the Federal Reserve does raise interest rates in 2015, the U.S. economy could suffer because of it. All the economic signs point to a global recession in 2016, and an interest rate hike will help fuel that recession according to Griffin and other investors. But a rate hike is coming no matter what happens, according to some economists. Investors don’t like to think about that possibility, but Griffin thinks a hike will be a catalyst for more investment opportunities. And Griffin has a track record that proves he is usually right.

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