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Citadel's Griffin urges White House to 'distance' itself from Fed, Financial Times reports

BY Reuters | ECONOMIC | 03:57 PM EST

Dec 16 (Reuters) - Citadel's CEO Ken Griffin has urged President Donald Trump to create "distance" between the Federal Reserve and the White House, the Financial Times reported on Tuesday, as economic adviser Kevin Hassett emerges as one of the frontrunners to lead the U.S. central bank.

Trump has identified Hassett, director of the White House National Economic Council, and Kevin Warsh, a former Fed governor, as leading contenders to replace current Fed chair Jerome Powell, whose term ends in May.

"The most important move the president and the incoming Fed chairman can make... is to create distance between the White House and the Fed," Griffin said, when asked whether Hassett should lead the Fed, the report added.

Griffin's comments were made at an event in Paris, the Financial Times added.

Citadel, the hedge fund founded by billionaire Griffin, did not immediately respond to a Reuters request for a statement.

Earlier in the day, Hassett said in an interview with CNBC that, "The Federal Reserve's independence is really, really important."

(Reporting by Kritika Lamba in Bengaluru; Editing by Shailesh Kuber)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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