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Leon Cooperman Sees Fed Raising Interest Rates a Quarter-Point

  • Says bank turmoil a ‘self-induced crisis’ fueled by easy money
  • US must do everything possible to stabilize banks, he says
Bloomberg business news
WATCH: Cooperman calls the instability in banking “sef-induced” and considers the impact on Fed policy.Source: Bloomberg

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.”