Leon Cooperman said he expects the Federal Reserve to raise interest rates another quarter-point at its meeting this week as it tries to quell the turmoil engulfing the banking industry.
“They’re going to accept a higher level of inflation than they would like to accept because of the stress in the financial system,” Cooperman, founder of New York-based Omega Advisors, said Monday in an interview on Bloomberg Television. “They have to stabilize the Treasury market, because the volatility of bonds is so great that it’s destabilizing equities.”
