Ken Griffin says Fed has not done enough, must continue on its path to reset inflation expectations

The founder and CEO of Citadel thinks the Federal Reserve has more work to do to bring down inflation.

At CNBC's Delivering Alpha Investor Summit in New York City Wednesday, Griffin said, "We should continue on the path that we're on to ensure that we re anchor inflation expectations."

The billionaire investor believes there is a psychological component to inflation.

It becomes reality once you expect it to be broadly enough. Inflation expectations should not be unanchored.

The consumer price index increased in August year over year and came in above expectations. The Fed raised rates by three-quarters of a percentage point last week in order to tame inflation.

The Fed has a hard job of controlling inflation while not slowing down the economy too much, according to the man. There is a chance of a recession next year.

There will be one recession. It's a question of when and how hard. We have a hard landing at the end of the year. Absolutely, that's right.

Despite the market turmoil, Citadel is having a great year. According to a person familiar with the returns, Wellington gained 3.74% last month and is up 25% for the year.

The Bank of England's intervention in the bond market could have a negative effect on investor confidence. The government's plans to cut taxes caused the central bank to buy long-dated government bonds.

The loss of confidence in the UK is worrying me. It is the first time in a long time that a major developed market has lost investor confidence.