David Tepper’s Beer-Throwing Arm Is Ready—Jerome Powell Better Deliver on Those Rate Cuts

After dumping 84% of his hedge fund Appaloosa's stake in Nvidia and throwing $116 million at the Chinese e-commerce giant JD, David Tepper has a bone to pick with the Fed. 

Oh, and let’s not forget, this is the same guy who traded the farm for Bryce Young, only to bench the rookie QB two games into the season. So, yeah, Tepper knows a thing or two about making bold moves and second-guessing decisions.

Tepper’s latest gripe? Jerome Powell and the Federal Reserve. He’s calling out Powell’s credibility, saying the Fed needs to cut rates at least two or three more times, or risk losing face. This comes from the man who once threw a drink at a Jacksonville fan while watching the Jaguars steamroll his Panthers. In other words, Tepper’s not shy about letting people know when they’re messing up. 

(Source: The US Sun)

Speaking on CNBC’s Squawk Box, Tepper didn’t stutter: the Fed must lower rates again, or it’s credibility is on the line. He’s skeptical of Powell’s “recalibration” promise, seeing the recent half-point rate cut as just a start. “Powell said something about recalibration,” Tepper said, “Now he has to follow through.” Essentially, Tepper is telling Powell to put action behind his words.

While the Fed’s recent 0.50% rate cut was its first in four years, Tepper sees it as just a drop in the bucket. He believes another 50 basis points by year-end is the minimum needed to keep the Fed on track. Anything less, and Powell might as well be on the Panthers’ coaching staff. Tepper’s blunt take: "Two or three more 25 basis point cuts are necessary, or the Fed loses credibility.” In hedge fund lingo, that’s basically telling Powell, "Time to step up."

Tepper, with an average annual return of 25%, isn’t rushing to bet on U.S. markets either. He’s cautious, noting that while he’s not shorting the U.S. economy, he’s not particularly enthusiastic about it either. “I don’t love U.S. markets right now, but I won’t go short,” he explained. Tepper’s more focused on international opportunities, specifically in China and Europe. He’s banking on China’s rate cuts and economic support, seeing JD.com as a better bet than Nvidia—for now, at least.

So, what's the bottom line? Tepper’s putting Powell under pressure to deliver on more rate cuts or face losing the market’s trust. And as the owner of the Panthers, Tepper knows that once credibility slips, it’s a hard road back. If Powell doesn’t deliver? Don’t be surprised if Tepper’s next drink-throwing target is the Fed chair himself.

The alert we dropped yesterday is already up 21%, and with a Cost to Borrow pushing 600%, this stock is about to crank it up another notch. If you’re thinking you missed your shot, think again—there’s still plenty of juice left in the orange. Don’t be the person “crying in da club” this time—get in on the second leg before it blows up even more.

Stock.News does not have positions in companies mentioned.