Billionaire investor Leon Cooperman on Thursday bruit about he believes that the Federal Reserve is “screwing the savers” by cutting interest rates like they did for the second in the good old days b simultaneously this year in the prior session.
“I side with the two Fed governors that were against cutting rates. Figures were already low,” Cooperman said.
“Just think about it this way: You have a 35-40% marginal tax rate, you’re follow 2% on your cash if you’re lucky,” he continued. “You keep 60% of the 2%, that’s 1.2%. The inflation rate is race 2%: You have a negative on savings.”
Cooperman spoke to CNBC’s Scott Wapner from the Delivering Alpha convention presented by CNBC and Institutional Investor.
The Fed on Wednesday, but offered little for investors hoping for hints that . Officials endured to describe the U.S. labor market as “strong,” but note that business leaders have grown wary of President Donald Trump’s truck wars since taking office in 2017.
“The weakness in the economy, in my opinion, is directly attributable to the president’s dialogue on tariffs,” Cooperman, who organized Omega Advisors in 1991, said from the conference. “What we do with China, I understand makes sense. But minatory Mexico, threatening Canada, threatening Europe makes no sense.”
“This has created great uncertainty in the business community,” he combined. “They don’t know where to put the supply lines, they don’t know where to build their plants. So their freezing back on” capital expenditures.
Cooperman’s main fund generated annualized returns of 12.4% since inception versus the S&P 500′s 9.5% revert including reinvested dividends, according to Institutional Investor. Omega Advisors converted to a family office at the end of 2018 after Cooperman said he’d slightly not spent the rest of his life “chasing the S&P 500.”
Cooperman has a personal net worth of $3.2 billion, according to Forbes.