Veteran Equity Manager Who Bet Against Lehman Brothers In 2008 Warns Trump Tariffs Will Force More Fed Rate Cuts In 2025

Veteran equity manager David Einhorn warned that President Donald Trump’s tariff policies would force the U.S. Federal Reserve to announce more rate cuts in 2025.

According to a Bloomberg report, Einhorn, who bet against Lehman Brothers in 2008, called Trump’s tariffs a “regressive tax” that would “disproportionately” affect people with lower incomes.

“If you bring in a tariff, maybe the supplier has to pay part of it, maybe the retailer has to pay part of it, but the consumer also has to pay part of it,” Einhorn said, adding that tariffs will lead to an increase in the prices of goods.

While Einhorn is uncertain if there will be a recession due to Trump’s tariffs, he said, “The trajectory of the economy is clearly slower.”

The equity manager is betting that the U.S. dollar will weaken further against gold prices. The dollar index fell to three-year lows earlier on Friday, while gold prices soared to a new record during the day.

Einhorn is not the only one to bet on gold – retail investors on Stocktwits also think gold and Bitcoin (BTC) will outperform other asset classes in 2025.

Einhorn has joined a list of eminent personalities who have voiced concerns against Trump’s tariffs.

It includes JPMorgan & Chase CEO Jamie Dimon, BlackRock CEO Larry Fink, Republican megadonor Ken Langone, and billionaire hedge fund manager Bill Ackman, among others.

“I don’t understand the goddamn formula,” said Langone, referring to Trump’s tariffs.

Fink thinks the U.S. is close to a recession, while Dimon warned of “considerable turbulence” for the U.S. economy.

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