U.S. markets are “utterly and completely unprepared” for an inflationary environment, hedge fund manager Ken Griffin said.

“In the United States there is absolutely no preparedness for an inflationary environment,” Griffin said at the Economic Club of New York on Thursday.

The Federal Reserve is concerned about “losing credibility in the market” by being focused on inflation when it’s running 1.6% or 1.8%, he said. “It’s very unclear what starts or what unleashes inflation” and our best policymakers don’t see it coming either, he said.

Citadel’s main hedge fund gained 19.4% last year, beating its largest multi-strategy rivals. The performance stands in contrast to the industry, which returned about 9% in 2019, according to the Bloomberg Hedge Fund Indices. Meanwhile, the S&P 500 Index rallied 29%, extending the longest bull market in history.