David Tepper says the Fed has to cut rates at least two or three more times to keep credibility

Published On Sep 26, 2024, 9:53 AM

David Tepper, founder of Appaloosa Management, believes the Federal Reserve must cut interest rates two to three more times to maintain its credibility after recent cuts. He noted the Fed's substantial interest rate decrease appears to be a recalibration for a stable economy, and warned that not following up with additional cuts could harm its trust. Despite feeling cautious about US stock valuations, Tepper is not betting against equities due to the benefits of easy monetary policy. He's shifting his focus towards China and prefers Asian and European equities over U.S. stocks.