Ken Griffin thinks Fed must reset inflation expectations.

By The Exchange Team

Citadel founder and CEO Ken Griffin believes the Fed has more work to do to bring down inflation, despite hefty rate hikes.

"We should stay on our current strategy to ensure that we reanchor inflation expectations," Griffin added.

The billionaire investor said citizens in the U.S. shouldn't assume inflation beyond 5% is normal.

"Once you expect it broadly enough, it becomes reality," Griffin said. So we must anchor inflation expectations.

The consumer price index jumped 8.3% year on year in August, approaching a 40-year record and exceeding expectations.

The central bank raised rates last week for the third straight time and promised more.

Griffin said the Fed must tame inflation without stifling the economy. He predicted a recession next year.