Americans Are Now 20 Percent Poorer, Republican Donor Says

America has become 20 percent poorer in the last four weeks, a Republican donor has said.

Ken Griffin, the founder and CEO of one of the largest hedge funds in the world, Citadel, blamed Trump’s tariffs for eroding confidence in U.S Treasury bonds and other U.S. assets—thus weakening the value of the U.S. dollar.

Why It Matters

American voters are concerned about the economy. Trump campaigned on reducing inflation and polls showed that voters overwhelmingly cited economic pressures as the key reason they voted for him in the November 2024 presidential election.

But in the first few months of his presidency, the U.S. economy has had a patchy performance.

After introducing tariffs on trading partners around the world and then pausing many of the charges—markets plummeted and then rebounded. This week, the dollar hit its lowest level in three years.

Experts have raised concerns about a potential recession in the U.S. The U.S. Treasury bonds market, valued at nearly $29 trillion, and often viewed as a benchmark for interest rates, needs to remain stable for the global financial system to function. Fears of a recession may cause investors to sell bonds, which would drive down their prices further and increase U.S. borrowing costs.

Meanwhile, Griffin is a Trump supporter and megadonor to Republican candidates. Trump’s allies turning against him may signal a decline in his political strength and put pressure on him to change course.

What To Know

Speaking to Semafor’s Gina Chon at the World Economy Summit in Washington, Griffin said the country “has become 20 percent poorer in four weeks.

“The United States was more than just a nation. It’s a brand. It’s a universal brand, whether it’s our culture, our financial strength, our military strength …. America rose beyond just being a country,” he said. “It was like an aspiration for most of the world. And we’re eroding that brand right now.”

Griffin also said that Trump’s attack on Federal Reserve Chair Jerome Powell has damaged the country’s reputation. Trump recently attacked the independent Chair for not cutting interest rates and suggested he could remove him from his position. He later said he had no intention of firing him.

“If you think of your behavior as a consumer, how many times do you buy a product with a brand on it because you trust that brand?” he continued. “In the financial markets, no brand compares to the brand of the U.S. Treasuries — the strength of the US dollar and the strength and creditworthiness of U.S. Treasuries. No brand came close. We put that brand at risk.”

What People Are Saying

Billionaire hedge fund manager Ray Dalio echoed concerns about a recession on NBC’s Meet the Presson April 13, saying: “I think that right now we are at a decision-making point and very close to a recession, and I’m worried about something worse than a recession if this isn’t handled well.”

White House press secretary Karoline Leavitt said on Tuesday that the Trump administration had received 18 written proposals on trade from other countries since the tariffs on April 2. She said the trade team had meetings with 34 countries this week.

“There is a lot of progress being made,” Leavitt told reporters, adding: “We are moving at Trump speed to ensure these deals are made on behalf of the American worker and the American people.”

What Happens Next

The extent to which the economy rallies remains to be seen. Meanwhile, support for Trump and his policies among donors and voters more generally will continue to fluctuate.