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Ken Griffin, billionaire founder and CEO of hedge fund Citadel, is one of the Republican Party\u2019s top donors. Yet his latest critique of U.S. President Donald Trump is strikingly sharp.<\/p>\n
In a Wall Street Journal op-ed in the fall, Griffin blasted Trump\u2019s attacks on the Federal Reserve and warned of the economic fallout such pressure could bring (1).<\/p>\n
\u201cThe president\u2019s strategy of publicly criticizing the Fed, suggesting the dismissal of governors and pressuring the central bank to adopt a more permissive stance toward inflation carries steep costs,\u201d Griffin wrote with Anil Kashyap, an economics professor at the University of Chicago.<\/p>\n
The Fed, tasked with maximizing employment and keeping prices stable, recently lowered its benchmark rate by 25 basis points and signaled two more cuts this year. Still, it noted, \u201cInflation has moved up and remains somewhat elevated (2).\u201d<\/p>\n
Griffin argued it is in Trump\u2019s \u201cbest interest\u201d to let the Fed act independently so it can make the tough decisions needed to tame inflation. Undermining that independence, he warned, risks severe economic damage \u2014 and could hurt the GOP politically.<\/p>\n
\u201cIn a worst-case scenario, if the Fed visibly bows to political pressure and permits inflation to rise unchecked, tens of millions of retired Americans will see their savings diminished,\u201d he wrote.<\/p>\n
\u201cSenior voters \u2014 tired of bearing the brunt of inflation \u2014 could cost the administration dearly in the midterms.\u201d<\/p>\n
In spite of this critique, Griffin was one of the Wall Street moguls present at a private dinner hosted by the President on Nov. 11 for the country\u2019s financial leaders. It\u2019s unclear if the Citadel CEO was able to address his concerns directly with Trump.<\/p>\n
Other financial experts are also warning of the dire consequences of interfering with Fed autonomy. Economists are voicing concerns that White House interference could lead to dangerously low interest rates, tanking economic growth. This could result in skyrocketing inflation, substantial losses in the stock market, and much higher interest rates in the long term. President of the European Central Bank Christine Lagarde has also warned that Trump\u2019s attacks on the Fed\u2019s independence are a \u201cvery serious danger\u201d to the global economy (3).<\/p>\n
Inflation erodes the purchasing power of money, a reality already eating into Americans\u2019 savings. Over the past five years, the U.S. consumer price index has jumped 25% (4). Looking further back is even more sobering: according to the Federal Reserve Bank of Minneapolis, $100 in 2025 buys what just $12.05 did in 1970 (5).<\/p>\n
The good news? Savvy investors have long turned to certain assets to help protect their wealth from inflation\u2019s bite \u2014 regardless of how well the Fed does its job.<\/p>\n
Gold has helped people preserve their wealth for thousands of years. Today, its appeal is simple: unlike fiat currencies, the yellow metal can\u2019t be printed at will by central banks.<\/p>\n
It\u2019s also widely regarded as 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 flock to it \u2014 driving prices higher.<\/p>\n
Over the past 12 months, the price of the precious metal has surged by more than 35%.<\/p>\n
Ray Dalio, founder of the world\u2019s largest hedge fund, Bridgewater Associates, has repeatedly emphasized gold\u2019s importance in a resilient portfolio.<\/p>\n
\u201cPeople don’t have, typically, an adequate amount of gold in their portfolio,\u201d he told CNBC earlier this year. \u201cWhen bad times come, gold is a very effective diversifier.\u201d<\/p>\n
A gold IRA is one option for building up your retirement fund with an inflation-hedging asset.<\/p>\n
Opening a gold IRA with the help of Goldco<\/a> allows you to invest in gold and other precious metals in physical forms, while also providing the significant tax advantages of an IRA.<\/p>\n With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver<\/a>.<\/p>\n If you\u2019re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.<\/p>\n 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)<\/a><\/p>\n Gold isn\u2019t the only asset investors rely on to preserve their purchasing power. Real estate has also proven to be a powerful hedge.<\/p>\n When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.<\/p>\n Over the past five years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has jumped by more than 50%, reflecting strong demand and limited housing supply (6).<\/p>\n Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn\u2019t exactly hands-off work \u2014 managing tenants, maintenance and repairs can quickly eat into your time (and returns).<\/p>\n The good news? You don\u2019t need to buy a property outright \u2014 or deal with leaky faucets \u2014 to invest in real estate today. Crowdfunding platforms like Arrived<\/a> offer an easier way to get exposure to this income-generating asset class.<\/p>\n Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100<\/a> \u2014 all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.<\/p>\n The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you\u2019d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment<\/a>.<\/p>\n Another option is First National Realty Partners (FNRP)<\/a>, which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.<\/p>\n With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart<\/a>, which 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.<\/p>\n Simply answer a few questions \u2014 including how much you would like to invest \u2014 to start browsing their full list of available properties<\/a>.<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Wall Street Journal (1<\/a>); Federal Reserve (2<\/a>); International Banker (3<\/a>); Federal Reserve Bank of St. Louis (4<\/a>); Federal Reserve Bank of Minneapolis (5<\/a>); S&P Global (6<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Win McNamee \/ Getty Images Moneywise and Yahoo Finance LLC may earn commission or revenue through links in…\n","protected":false},"author":2,"featured_media":155494,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,3205,65,866,246,3207,18779,111,139,69,244,245,103096,12752],"class_list":{"0":"post-155493","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-dave-ramsey","10":"tag-donald-trump","11":"tag-federal-reserve","12":"tag-finance","13":"tag-jeff-bezos","14":"tag-ken-griffin","15":"tag-new-zealand","16":"tag-newzealand","17":"tag-nz","18":"tag-personal-finance","19":"tag-personalfinance","20":"tag-political-pressure","21":"tag-wall-street-journal"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/155493","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=155493"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/155493\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/155494"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=155493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=155493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=155493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}