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00:00Mr. Griffin is a visionary, philanthropist and leader in the world of finance. He founded Citadel LLC and Citadel Securities in 1990 and has grown the company and the world's largest alternative investment firms, managing over 62 billion dollars in assets. As one might expect, Mr. Griffin has received numerous accolades and recognitions for his contributions to the finance industry and is widely regarded as one of the most successful hedge fund managers of our generation. Please join me in welcoming Mr. Marquez and Mr. Griffin to the Forward Society of Palm Beach and among the Jihye Lee Pharma. OK, back house today. Thank you. Guys, thanks so much for attending. So Can great talking to you here in Palm Beach. Folks, I'm really looking forward to talking to Ken Griffin about the future of finance. As a reminder, Mr. Griffin's hedge fund, Citadel, made 16 billion dollars in profits for clients last year, outperforming pretty much entire industry. Right. Ken himself made a billion, according to our calculations at Bloomberg. But you guys are going to excuse me if I start off by asking about the present and not the future, because I want to talk about the U.S. economy. Ken, part of your success. Let's hear what's correctly predicting that inflation would be the worst in 40 years. This year, inflation sued the hottest topic in markets. What are you doing still, though, with inflation right now? Is inflation still a big of the phones? How are you betting on it? So first it's up. It's a pleasure to be here at the for our society in Palm Beach. And if we look at that, the mission of the Ford society, it's about the appreciation of art. And I I can't paint. I have a few paintings, but I can't paint or music. And I'd have to pay you to be here if I were to sing literature, which is just not going to be our forte today. So it's drama is the fourth canto. I'm sorry you feel like your talents here. So we're gonna have to play with that as our theme today. We're going to have good conversation with a bit of drama to make sure that we're in keeping with the history of the for our society. Now, if we if we think about the economy, that's that's not gonna get a lot of drama going except for last year with inflation at near record highs in our lifetime. It was a pretty traumatic experience for American households. We saw negative real wage growth for workers in America and for retirees who are usually on fixed pensions and who are depending upon their savings to maintain their standard of living. Last year was a particularly horrific year, and that increase in inflation driven by the sheer magnitude of the stimulus spending on the back of the pandemic really caught our policymakers off sides and in particular forced the Fed from going for a position of being incredibly accommodative, too. In recent months, rapidly raising interest rates at one of the fastest paces ever to try to put the inflation genie back in the bottle. Now, when you manage money, you make money by having a difference in opinion as compared to the broader market. And for us, the difference in opinion that we had was that inflation was going to be very hot. And it was. And that was a source of revenues for us last year. This year, I I'm actually really pleased that we're not far away from consensus on inflation. The market overall thinks inflation's going to head back towards the upper 2s in the foreseeable future. And we are not materially different than market consensus at this point in time. So I truly hope that the markets right on this call January gives us some pause for concern. Labor market red hot in January. We don't know how much of that is the weather. In fact, January was unseasonably warm. We're going to know a lot more in a few days when we see the February payroll numbers, which we expect will be much closer to 200000 growth versus 500000 plus in January. That'll give the Fed a bit of comfort that they're getting the job done, cooling the economy, bringing down inflation and putting that that pretty evil inflation genie back in the bottle. But then what's your take on what Jerome policy each day that the Fed was prepared to increase the pace of rate hikes and that the terminal rate is likely going to be higher than previously anticipated? A lot of people are reading that as a sign that they are going to go faster. So he created space today to move by 50 basis points on the next hike, know they'd come into this year pretty clearly telegraphing that 25 basis points was going to be the per meeting rate hike for the early part of the year. And then in some sense, it's taking the foot off the brake and seeing where the economy lands. And if, in fairness, the Fed the interest rate tool as a means of controlling inflation is a it's like a it's like having served you with a dull knife is a really difficult tool to get the job done with. Because you hit the housing sector, you hit the manufacturing sector, you hit parts, the economy that have a very high sensitivity to interest rates and you tend to leave the rest of the economy relatively untouched. So the Fed doesn't have as much impact with their tool as you might hope. And although they. These rates considerably. It's not clear how long the lag effects are for the impact. And once the impact starts to play out, how how damaging that impact is. So they aren't. They're in uncharted territory. It's difficult place to be. Might you know, if I could if I could tell one thing to the chairman, I would I would tend to say less. I would just be right. A message. We're going to put the inflation genie back in the bottle. We're going to do what it takes to make that happen. And we're going to raise rates consistently until we see very clear evidence that we put this behind us, because every time they take the foot off the brake or the market perceives they're taking the foot off the brake and the job's not done, they make their work even harder. And at the same time, remember, they're impacting their very, very harsh way, a very small part of the economy. That's really tough for those businesses that live in that part of the economy. So you're you're talking about the damage. Do you think we could see a recession this year? So we have the setup for a recession unfolding. What we're seeing is that the American savers did what you'd expect in American summers that we would expect over the pandemic. They were handed enormous amounts of money by the government. Most were able to keep their jobs because of work from home and otherwise. And let's be clear, you couldn't call for dinner with your friends. You weren't traveling. So you save money. And the American consumer saved trillions of dollars. Now, the flip side of this is the U.S. government spent about five trillion dollars over the pandemic. To allow us to stay at home and the sofa put five join in context, we spent about that much money in real terms in World War 2 to win World War 2. We spent as much money in the war against the virus as we did to save the free world in the 1940s. And that money that went to American consumers has been coming back into the economy, post the vaccinations, post the reopening of the economy, and it's been spent at a toward rate. Best guess there's about a trillion change left of excess savings that's being spent and roughly a hundred billion dollars. Hundred and twenty billion dollars a month, which means by the end of this year. In some sense, the punches out of the bowl. And that makes next year, late this year, a very interesting transition point as this as this post pandemic orgy of spending comes to an end. And then we'll see the shrews. The true strength in the economy. And that's gonna be a really interesting moment in time. So you promised drama. And as of now, we have the orgy of spending and the night the doll, that doll house knife surgery, which I thought was a lot of dread. Like many. Like the dull knife. Yeah. Yes. And I do think that, you know, everyone has these very high expectations that the Fed can just work magic on inflation and they don't have it that easy. And that's why I really believe that the consistency of messaging is so important, because part of how the Fed gets the job done is the perception of the American public that they can get the job done right. Inflation has a significant component around expectations. If you think prices are going higher, you're going to be much more demanding in your wage negotiations as a union, for example, or as an employee. You're going to really be focused on how to get your wages up as fast as you can because you see the bills coming your way. The Fed breaks expectations of inflation. It does wonders in terms of helping make the economy work better. Do you think they're doing a good job in framing the message? No, I think the variance, the message over the last couple weeks has been incredibly counterproductive. And what do you think is the terminal rate ultimately? I mean, how long how far are we going to get and how long are we going to stay there? You know, the markets are pricing in that. We'll see Fed funds somewhere in the mid fives. That's probably about right. And of note, the market predicts that by the end of next year, we'll have cut rates by 200 basis points. So the broader financial markets thinks that we're heading towards a very sharp peak in rates then in the months ahead, followed by a period of relative calm and rates and then a pretty fast cut in rates throughout 2024. Is that your perception as well? No, I think it's probably a pretty fair assumption as to how the market's going to play out. We are going to hit this moment in time where we're clearly inflation is decelerating. And the punch bowl being empty. We're going to see the economy start to slow as demand fades away. So we're running a big story on Bloomberg today about harm, how markets are basically shrugging off the risk of a debt ceiling standoff, at which point I think that becomes a relevant theme for the markets. Is that risk under appreciated? Regretfully. There is very little common ground between the two parties that are in power today. In fact, I'm not sure there's any common ground between the two parties that are in power today. And as such, unfortunately, it will probably not be until we have the volatility in the market that goes with an impending default that we will actually see cooler heads prevail. A compromise reached to kick the can again to the typical budget process where we'll see, I think the real contours of what the magnitude of government spending cuts will be and or the nature of tax increases will be. So I think the debt ceiling will be a non-event until it is an event. That event will shake the confidence of the House and Senate. They'll find a common ground to kick the can again. They're very good at that. It's a it's a national sport. And then we will address this in a haphazard, mediocre way later this year and our routine budget process. But there will be a compromise. I mean, God willing, and I do think it'll be the market volatility that will drive that compromise to kick the can. And the reason we have to do this is America owes about 30 trillion dollars today. And if we defaulted on our debt for even a minute, the increase in interest rates that we would pay for for decades to come would cost our economy dearly. I mean, if you think about it, if if our current 30 trillion dollars of debt had all be refinanced at today's prevailing interest rates, we would spend about six and two thirds percent of total GDP. Just servicing our debt. I mean, should start work in January and buy roughly the second half of January. Having had no money to take home, you would work long enough to pay the interest bills for the year on the U.S. debt. You mentioned that one of the ways Washington was trying to carve out a way of this was tax hikes. In fact, President Joe Biden said yesterday that he was considering a tax hike on incomes above 40 hundred thousand dollars. Right. So is do you think that's threat policy? That's the right way to go. So the Democrats are very enamored with with the political talking points of raising taxes on the rich, and that works for a very brief period of time. But there's just not enough money there to pay the actual bills. And so unless we are willing to bring spending under control, we're looking at tax increases for all Americans. You know, in Illinois, for example, which has a a chronic deficit spending problem on pension, unfunded pension plans in the hundreds of billions of dollars they don't raise, they haven't been able to raise income taxes yet, but they've raised almost every other tax you could ever imagine from gas to property. And those taxes actually aren't they're not paid by the wealthy as much as they are by the people who are in the lower class, the middle class. They're incredibly regressive. So if you look at a state like Illinois, which prides itself on being so progressive and then you look at where the tax burden actually falls as they continue to try to put their balanced their balance and budget. It falls on the very people that that government claims to be entrusted protecting. And so what I'm worried about is that the talking points are cheap. The political victory that comes with it is cheap. But the hard work comes from having to have the real tough decisions about where to cut spending. And of equal importance. How do you take the tax base and broaden it and not just find taxes that disproportionately affect people in America that are living paycheck to paycheck, trying to make their bills happen? You mentioned that the beginning of a conversation that your vision for inflation doesn't differ that much from the market. Where to? What exactly are you? How you position with the fund right now? Like, where are the biggest opportunities for a hedge fund like Citadel right now? So we are we are constantly positioning our capital against where we have a differentiated view as compared to the market. So, for example, we think a company is going to announce strong earnings for quarter that others don't anticipate and perhaps guide for for stronger future results. We'll be along that stock. So. Do have a different intuitive feel now. Right now, I would say it's fair to say that we are where we're somewhat licking their wounds from the incredibly strong economic data in January, really. So we did not anticipate that we would see such strong economic data in January, and that's forced us to re-evaluate our our interest rate and inflation positions here in the United States or for that matter, around the world. And part of what we do, I think very well as a firm is we accept reality, which is why we didn't see this this payroll number coming. We didn't see the inflationary print that went with this. We've got to go back to the drawing board and rethink our framework and we decide how to deploy our capital. And we'll do that for a couple of weeks. And we're back at it. But but are very successful. Investors are very quick to acknowledge when they've got it wrong and they don't let it. Well, I think it just like thesis creep come into play when you're wrong. You're out. You re-evaluate. You decide what to do next. And that can sometimes mean doing the exact opposite of what you were doing just eight weeks ago, and in particular with with rate markets around the world as volatile as they are. We are constantly changing our position from long or short rates in various countries around the world. Every couple weeks you've mentioned Leon ISE policies, and I can't help but think of the contrast with Florida, which is where we are right now. Right. And then I wanted to shift a little bit of the gears here and talk a little bit about Florida. So we're in Palm Beach, and I'm sure our audience is going to remember that at the height of the pandemic can turn the Four Seasons law be the first in the ballroom, I'm sorry, into this gigantic trading floor, the heart of Citadel Empire, just six miles down the road. And then apparently he'd like Ford so much that he decided to bring the tire company here. Ken, how's your life in Florida? Well, actually. Look, let's go back to that story for a moment. And if it did, I felt it wrong. It's close enough. It's close enough. We. We realized that we needed the ability to maintain markets. The U.S. equity market at the start of the pandemic, where were the largest trader backwards United States, we account for roughly one in four shares that changed hands every day. So we have a we have a job that transcends just being here for Citadel. We view ourselves as we want to be here for the tens of millions of retail investors that count on us to provide liquidity and the thousands of companies that look to us as being their principal market maker in their stock and at the Four Seasons Palm Beach in about five days. We built a trading floor that could have handled the entire equity volume of the United States of America. And right now, they are using it for parties. So I actually I took my son to the forces while you're doing this. I wanted to see what 200 people working at midnight looked like because this is how you make things happen. And when we finish that trading floor build out, we put a hundred on some of our colleagues and their families there, shut the doors. No one allowed to enter. No one allowed to leave. So. So to the NBA, this is how you build a bubble. And this is how you do it fast. And that served us incredibly well. We were we were able to handle our trading in the U.S. actually market flawlessly throughout the pandemic. And I would say that I have a debt of gratitude to the leadership of Palm Beach, the city, the county and the state for their willingness to help us make that happen in five days. I mean, in New York, we'd still be filing paperwork to do this. And it's a real testament to the get things done mindset that goes with leadership in Florida. It's it is so palpable when you meet with the with the government leaders and civic leaders in this state that Florida is open for business. They want firms to be successful here. They want firms to be successful here and they want people have a high quality life here. Now, it's it's not a secret. I have some property here in Palm Beach and I have a really rolling dream that one day I'll build a house here and I can retire here one day. It wasn't me who drove the decision to come to Florida. It was the hundred. And some people that live in that bubble who said, why would we trade the anarchy in Chicago for the tranquility in Florida? So let me ask you the next question then. One thing I'm fascinated with is that you're relocating a gigantic company with more than 4000 employees around the world to Florida. Obviously, not all of them are going to live here. But how many employees you plan on having here in Miami? Well, you plan on having Miami. How many you plan on having in Florida? Like how is the planning of moving people to Florida going? So it's going. It's going. Well, here's the biggest challenge. The biggest challenge right here right now is getting office space, because we're not the only people are saying you want to be in Florida. And the migration of of talent to this state is just mind blowing. So I would say that by sometime late this year, we'll have 250 people Miami. I would think three to five years out, we'll have between 700000 people in south Florida. And I'm really excited about that. Many of my most senior leaders are have either have moved or are moving to here from our offices outside of outside of New York City. And that's important to stress. New York is one part of the United States where people are are very optimistic about the future still. And the mayor of New York understands clearly he asked to address the issues, a crime. It's a big focus of his. And I applaud him for speaking out on this issue after Lori life. It was defeated as mayor in Chicago. I. And we have a we have a really big commitment to New York City because a number of my senior team members that's been home for their careers. That's where they want to be. So the United States are two premier cities will be Miami and New York. And then, of course, in Europe, London is an incredibly important city for us. Are you going to sue them to keep an outpost in Chicago? No. I think you pick the right choice words outpost. They'll be an outpost. I have. I have a number of colleagues. Chicago from Chicago is home. And for a litany of reasons, they're not going to leave Chicago. And I'm frankly, I'm grateful for them being on the team here at the Citadel. We're going to have to move offices in Chicago to a safer location. I mean, we're our offices is literally not where we want to be because of just just pure safety concerns. I mean, when you've got hooligans lining the street, throwing things at ongoing cars outside the front door of your office, you know, you're in the wrong part of town. The challenge is there's not many right parts of town left in Chicago. And it's a serious problem. If I put a video up here, you'd almost want to cry. You know that that can't be America. Since you brought up Chicago, I have to ask you about them, about the mayor run. Obviously, you just mentioned that more got defeated. But do you have a candidate for the runoff or you're not following it at all? So I'm out of Chicago politics. Like I like a salmon swimming upstream. I brought it up. I've had enough of Illinois. I. I will tell you, I'm. I really admire my colleagues who have supported Paul Bales publicly with their voice and with their money. I hope that Paul Vallas becomes the mayor of Chicago. I think he's the best choice for the city. But Illinois is going to tougher ahead of it. It really does. Until until Springfield choose to change course. And prioritize jobs, education and public safety. I think it's a lost cause. Let me just get us back a little bit here to Miami and Palm Beach, actually. So you mentioned that you have a lot of you have property in Palm Beach and you also have commercial property here in Palm Beach. Can you tell us a little bit more about your plans for that? I'll keep that short and simple. We have commercial property and Worth Avenue and we will be redeveloping it to have a fantastic storefront experience, restaurant experience and office space on the on the second and third floors. You had to have the tenants or no DAX tenants. We read all the challenges. It's not that to be a tenants. It's picking who he wants a tenant. I mean, you cannot believe the number of incoming phone calls or people looking for space here in Palm Beach in the billions. Not that well alone that we own publicly. But it seems the people that are in retail or in restaurants are able. Like they want space here. How long that redevelopment is going to take? I'll be updating that actually in the next two or three weeks. So that's on our list of developing projects right now. And that one's important to me. It's right here in Palm Beach. Yeah. Well, it's important to all FTSE. Well, actually, yes. The Neiman Marcus store needs to be returned back to its its place of grandeur here. And since we're talking about real estate, you actually have plans to build what's going to be a stand out as a stand up tower in Miami. You'll have plans to build a stand on tower in New York. How's life of Ken Griffin, real estate mogul now? How he's being a real estate tycoon. Why not? I have land between land and buildings, a lot of work. But let me tell you why we're going to build these buildings. We have been committed to return to the office. From from literally the early days, the pandemic. So we spent in an incomprehensible and money to bring our people back to our offices right out of the gate at the start of the pandemic for weather was Covid testing or robots with the movie lights to clean the bathrooms. Social distancing requirements. You could just imagine. Well, I thought I was running a health care institution for a period of time. But why would we do that? I think there's just just incredible value in people collaborating together, working together, innovating together. And come summer of 20 21. We brought everybody back to work five days a week. I ask a lot of my team in doing so, you know, we're in a world where that's not common yet. What we have found is, is our team has embraced this. But we want to make sure that we have facilities in our in our two primary cities that represent the commitment that we want to make to our team members in terms of their sense of of health, safety, quality of life, work environment that parallels the incredible commitment that they make to each other and to the firm. And therefore, we're going to be building a new skyscraper in Miami and a new skyscraper in New York, which will which will fulfill that that goal of ours. How easy it is to get people in Miami who acts to like people like the beach back to the office five days a week. Well, since they all came from Chicago, they didn't know that life. And, you know, there's no signs of a different work ethic in Miami than there was in Chicago. I mean, my colleagues love what they do. They enjoy working with each other. You know, people's people talk about, well, if you go to Florida, will people be as committed to their work? Look, if you go home and it's blue skies and it's sunny and your kids come home from school and you know what? They're happy. And it's amazing how a school devoid of woke ideology leads itself to happy children. I think people are much, much happier in their lives and in their careers when their personal life is in a good place. So here the audience, I'm sure, has one big question that they want me to ask a lot of people who have their own charities, and I know that you've been ramping up your charity giving through Florida. What are your what are your priorities here? Education, then education and a bit more education. So that's that. Hands down is the biggest priority, both supporting the schools in Miami that support the community. That's really important to us. You know, we can see the impact of so many people having moved to Miami on the on the educational infrastructure. And then how do we support the institutions of higher education? Because for us, that's such an important source of talent. You know, in Chicago or in New York, you're Colombia's Columbia's. And why use your universe Chicagos? These are really important, important feeder schools of talent. How do we make sure that Miami has strong, strong programs in areas in STEM that feed us our tail base? So that's that's really number one is education. And that's not just at the upper echelons. You know, one of things that we supported during the pandemic here in Miami was, was broadband access for children of lower income households. How do we help to cross the digital divide so that every student in Miami has a chance to to realize their full potential? So education. Hands down. Number one. Number two is public safety. And, you know, this is why Miami is so great in Chicago. We had we had real success with creating. Facilities that integrated predictive analytics so the police force can better deploy their resources to improve public safety. And when we did this in Chicago under Mayor Emanuel, who I think the world of it brought crime down, murders down by remarkable double digit percentages in many communities that this was deployed. Now, all that value was lost in the J.B. Pritzker, Kim Fox, Lori Lightfoot days. But Miami embraced that. And we're going to support that build out across metropolitan Miami as Miami continues just to bring its crime rate down. Like I love the commitment that they have to the streets being safe where you can walk outdoors between a restaurant, your house, and just not worry. It's hard to imagine in Chicago. You know, I have friends. I would take uppers to go for blocks. You just didn't want to be on the streets. And if it sounds melodramatic, I had four colleagues robbed at gunpoint at Citadel. I had a colleague stabbed a few hundred yards the office and two colleagues with bullets fired through their car. I had roughly twenty five bullet holes. The front are the first story. The building where I live, the store across the street from me. They drove a van through the window to help facilitate stealing all the goods from the store. And my favorite is they tried to carjack my security driver from the front door of my house. So if it sounds like a third world country, I actually it's unfair to most terrible countries. Were there respect that people have for their neighborhoods or one another seems to transcend what is now tolerated in Chicago. Then what would you say is the you read some kind of like what you see the benefits of being Florida? What do you what would you say are the downsides? So the city is going to well, Miami in particular had to deal with affordable housing now because they have good zoning laws here that will facilitate builders building the housing issue will address itself in due course. But due course can be years. And there's people struggling with an increase in price and housing. You know, again, you've got you've got all these people moving here that puts a demand in place for real estate. And the locals, just like they're now competing with people that move from New York. They move to San Francisco, they move across the country. That's that has really led to a dramatic level of housing inflation and the fashion that we can build housing in Miami, the better. So that's that's a challenge. And frankly, credit to the government for being very on top of this and for working with the development community to help address that problem that shovels in the ground that's getting buildings built. That's really important. You know, we talked about education already, the sort of surge of students coming to Miami. That's that. Again, that's a big lift. And if you talk to the private schools, they're building new buildings. They're going to build new campuses, they're going to open new new facilities. So we're seeing the supply side respond to this. And of course, the public school system will have to build new schools, will have to augment their current facilities. So we're seeing that be addressed. Congestion is a problem. There's a lot of cars on the road. When it's all said and done, though, you'd much take this set of problems as a city than the inverse. And I've lived through the inverse. You know, the. We talked about people moving to Miami. Al Moyes had a massive exodus of people over the last decade. Something like. I think it's 200000 people left in the two years, the pandemic. All of a sudden, your schools are 60 percent full. Your streets in the city are empty. Your restaurants are closing. You'd much rather take the challenge as a growth. Then the challenges of a declining state. So you've already brought up politics in this conversation, so I have to ask you about that as well. We were talking a little bit about about your philanthropic giving, but you're also one of the biggest political donations, political donors in the country right now. And we interviewed J.B. Pritzker at Bloomberg recently, and he said, and I'm quoting here, he was willing to spend whatever it takes to keep Republicans, namely round the Santas out of the White House. Are you willing to spend whatever it takes to get him elected? Why would spend whatever it takes? Make sure that J.B. Pritzker is never in the White House. Applause. I mean, you know, what's funny is, is in Illinois. You know that J.B. was in a race for the governor against it to be determined, Republican primary candidate and ISE ISE supported a man, Richard Irvin from Aurora, who was a fantastic mayor. Really, really solid person. And. And I knew early on in the primary that that we were actually moving to Florida. My kids had applied to go to school down here. We bought a three million dollar parcel of land in Miami to build a new office building, and I found myself writing checks for about 50 million dollars to support Richard Durbin knowing I was going to leave. Now, J.B., to his credit, won the primary on the Republican side by supporting the Make a Trump candidate who constantly would deplore in the actual we're not. But he spent 35 million dollars meddling in the Republican primary to try to position himself against the weaker of two candidates. Why would I spend 50 million dollars in the Republican primary in a state that I had no intention to live in? I thought the best gift I can leave all NOI was good leadership. And it breaks my heart that he was re-elected because the state of Illinois deserves good leadership. My family traces its history back there for 100 plus years. Illinois will always have a special place in my heart. But I watch I watch the policies of J.B. Pritzker destroy one of the great states in this nation. It breaks my heart. So I will. I will aptly tell whatever it takes to make sure he's never president. Now, on the Republican side, you know, we're going to have a really interesting primary ahead of us. I'm actually I'm not going talk about Ron DeSantis because the state of Florida speaks for itself. Really? People here are gonna be very sad. No, actually, they won't be, because he won the state in a re-election for governor by an absolute landslide. And I think that speaks to what people want in their leadership. They want a government that works for them. They want a government that is thoughtful about minding their checkbook as taxpayers. They want their children educated. They want their streets to be safe. And they want. They want their communities to prosper. I think that's a simple message, and I don't think I need to talk about Ron DeSantis. I just need to look across the state and realize that message is being delivered here in Florida. Now, I'd like to see that message across America again. It is. It is absolutely heartbreaking to see where the progressive liberal agenda is being unleashed and the damage it's doing to our cities and more fundamentally, to our children. What we do ourselves as adults. That's up to us. But in Illinois, there are 53 schools. Without a single child at grade level. That's where J.B. Pritzker policies lead you to. And when we take away a future from a child, it's it's almost like the most hideous form of silent homicide ever. We are destroying their dreams before they have a chance to even exist. That's J.B. Pritzker as world. So the American voters. I think we'll see what opportunity looks like when they look at the state of Florida in two years. They'll make a decision. And I think that the results in this state speak for themselves. You think roads should rim? I'd. I would love to see him ride. And then I know you said you wouldn't talk about the sentence, but let me ask you one question about him. Then we move on to another topic. What policies that he has that you actually disagree with because you said that you listed all of his successes education, crime fighting policies. Which ones you're not 100 percent in line with. But I mean, here's the big picture. There's no politician were any of us are going to be in line with all their policies like that doesn't exist. All right. Like every politician strengths, which like weakness is what you don't like. All right. This is just this ubiquitous. I mean, that The York Times wrote this really nasty article about Rahm Emanuel because I was one of Rahm's big supporters. I'm like, why don't you applaud the fact that the two of us who are two sides of the aisle can find common ground and 90 percent of the issues that matter to our city? Why don't you applaud that? Why don't you think how good it is that we're aligned against education, we're aligned against having safe streets were aligned against having a prosperous business community. Why do we need to find fault when we find the ability to find common ground? Let's talk about Ron for a second. He has governor of the state of Florida. I've said before, I don't agree with how we handled the Disney situation. In the end, it's my personal opinion. I think it's intimidating when the government takes steps that may look or feel like retribution. The CEO of Disney picked a fight with Governor Santos, Governor Santos LA to pick a fight back. But that should be a choice of words. And I think that removing the special governance status of Disney in there in their home county, that feels like overreach, that feels like retribution. And even if it wasn't, the timing's terrible. And the reason that that's so problematic is if you're a small business owner, you say to yourself, well, wait. If the state can hurt Disney at a whim, they can wipe me out in a moment. And that discourages entrepreneurship and that discourages the wheels of commerce. So that's one that worries me. You know, I'm worried about the messaging around the vaccinations that the governor's currently engaged in. It's a really tricky issue. And this one strikes close to home. Operation Maria Lauterbach, the feed originated at Citadel. There was a conversation I had with the White House at the start of the pandemic about the value of us pre purchasing vaccines before we knew if they worked time to market. If we have to wait for a vaccine to be approved, then we ramp up manufacture. We're in a lose valuable months and that means we're going to lose hundreds of thousands or millions of lives. Why? Why do I worry about the governor's messaging here? Right now, we're very fortunate that the coronavirus has has mutated from Delta to Omnicom. I'm macron is I mean, thank you, God it is for most people like a very bad cold delta goes right for the lungs. By the time your immune systems respond, you may be dead on. NIKKEI goes for the sinuses, the upper respiratory tract, its throat. It's it's it's much less deadly. But if we create a mindset that vaccines are just intrinsically dangerous and he has some, there are nuanced points where he's right for teenage boys, it's not clear to me you'd want to vaccinate them. It's a really interesting debate. But if you make people fearful of vaccines and we see it turn to a more dangerous strain again and there's no assurance. And so one way street to armed, you know, we go Delta to armed Akron and the next one's even less problematic. It could be more problematic. But if we may, people worried about taking vaccines, there could be an enormous loss of life. So that, for example, is warm, right? I don't agree with the governors. I don't agree this choice of words or how he's positioning the issue. And again, he has a lot of good points behind the dialogue. But when you're in public office, you've a very loud voice like he does. And I love much of what he has to say. Those nuances can get lost. So I'm conscious of the time here and I have to open the floor up for questions. But I do have one other question before I do that. So I've actually brought someone here to ask you a question and that someone is chapped CBT. And by the looks of it, Chapstick is asking you for a job because I ask you, what should I ask Ken Griffin? And he said, well, you should ask Ken Griffin about the role artificial intelligence is playing finals in coming years. So, again, have you ever actually used Chad to FTSE? And how do you use that instead of though? Are you offering him a job or x ray? Well, so it's a great question. Raise your hand if you use Chad Beatty. Oh, that few. All right. I'm just going to say this. You've got to go home and try. All right. Because you can literally pose the question and it will answer your question. You can say something like write a story about a murder mystery at the Four Ark Society in Palm Beach and or write a story with Ken Griffin as the lead character. I don't wanna be the protagonist that story necessarily. But you can you can you can generate it will generate that story on the fly. You can also give it computer programming code and one language and say, please convert this to a different programming language. And it will do that. You could say on the next generation of it, draft me a lease contract to lease my house. It'll write the lease. This branch of A.I. will be game changing for the economy. Because it will take an enormous amount of work that's done today. By people and do it in a distinctly. Different, highly automated, highly efficient way. And that will have real bearing on our economy. That's that's gonna be a game changer for the economy. And like most changes in technology with clear winners and losers. But this is this is going to be the future. And it's worth going home. Signing into chat CBT. Open an account, an experiment for for 20, 30, 40 minutes and impress your grandchildren like they'll think you're so cool for doing this. It is the fastest growing consumer application in the history. The Internet. Have you started using it as set of though, we are right now trying to negotiate an enterprise wide license? Really? Yes. For what specifically? Everyone in the ideas you're talking about. So everything from helping our developers write better code to translating software between languages to analyze various types of information that we analyze in the ordinary course of our business. This branch of technology has real impact on our business. And I'm actually really excited to see how this changes the world.

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Ken Griffin on Inflation, Fed, Recession, Debt and More

Billionaire Ken Griffin said the setup for a US recession is unfolding, with the Federal Reserve needing to raise interest rates further after Americans were stung with “traumatic” levels of inflation. The founder of Citadel said the Fed is limited in how much it can fight inflation with interest-rate increases, likening the tool to “having surgery with a dull knife.” Griffin spoke with Bloomberg News' Felipe Marques an exclusive interview in Palm Beach, FL. (Source: Bloomberg)

Bloomberg Technology
The only daily news program focused exclusively on technology, innovation and the future of business from San Francisco. Hosted by Emily Chang.
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