Castle Investment founder Ken Griffin said that the Republican Party is trying to deal with some policies on tariffs and immigration. These policies are driving up inflation, but the easing of regulations emphasized by the Republican Party will eventually help curb rising prices. In an interview at a conference in Paris on Tuesday, Griffin said, “Republicans are struggling to face this reality: many of the policies they proposed during the election campaign — such as banning illegal immigrants from entering the US — are actually driving up inflation.” He said, “When you stop the influx of illegal immigrants, you reduce the size of the available labor force, which is inflationary.” However, Griffin said that in the long run, deregulation “should lead to an increase in productivity and thus a decline in inflation.” Federal Reserve officials cut interest rates for the third time in a row at last week's meeting, but they also sent signals that further interest rate cuts are not a foregone conclusion. Some policymakers worry that inflation is still above the Federal Reserve's 2% target, while others are more concerned about a slowing labor market. Griffin also mentioned that he believes there are differences in the reaction between the bond market and the stock market when it comes to inflation and deregulation issues.

Castle Investment founder Ken Griffin said that the Republican Party is trying to deal with some policies on tariffs and immigration. These policies are driving up inflation, but the easing of regulations emphasized by the Republican Party will eventually help curb rising prices. In an interview at a conference in Paris on Tuesday, Griffin said, “Republicans are struggling to face this reality: many of the policies they proposed during the election campaign — such as banning illegal immigrants from entering the US — are actually driving up inflation.” He said, “When you stop the influx of illegal immigrants, you reduce the size of the available labor force, which is inflationary.” However, Griffin said that in the long run, deregulation “should lead to an increase in productivity and thus a decline in inflation.” Federal Reserve officials cut interest rates for the third time in a row at last week's meeting, but they also sent signals that further interest rate cuts are not a foregone conclusion. Some policymakers worry that inflation is still above the Federal Reserve's 2% target, while others are more concerned about a slowing labor market. Griffin also mentioned that he believes there are differences in the reaction between the bond market and the stock market when it comes to inflation and deregulation issues.