From CNBC: 2024-09-26 11:50:21

David Tepper of Appaloosa Management advises investors to trust the Federal Reserve’s promise of interest rate cuts for credibility. The Fed made an aggressive half point cut last week, signaling more cuts to come by year end. Tepper remains cautious about U.S. markets despite strong GDP and inflation numbers.

Tepper expresses concern about the current state of U.S. stocks as the Fed eases monetary policy in a solid economy. While GDP growth is robust and inflation above target, the labor market slowdown triggered the recent rate cut. Tepper remains hesitant about the market setup despite the benefits of easy money.

Despite his reservations about U.S. markets, David Tepper is not betting against equities due to the accommodating monetary policy. He remains cautious about the market dynamics and prefers Asian and European equities over U.S. stocks. Tepper is all in on China following recent fiscal support measures to boost economy.

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