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Leon Cooperman.Rick Wilking/ReutersLeon Cooperman warned of sticky inflation, higher interest rates, and a potential recession.The billionaire investor blamed senseless fiscal and monetary policy in an interview with Insider.Cooperman called on US authorities to clean up their act before they plunge the country into crisis.Short-sighted officials have paved the way for stubborn inflation, steeper interest rates, and a full-blown recession, Leon Cooperman told Insider in an interview this week.The billionaire investor railed against years of “very inappropriate” monetary and fiscal policies, saying they’ve driven demand to unsustainable highs and caused the government’s debt pile to balloon.Near-zero interest rates, carefree government spending, and excessive bond-buying overheated the economy and caused prices to soar last year, which spurred the Federal Reserve to rapidly raise borrowing costs and destabilize the system, Cooperman said.The ex-chief of Goldman Sachs’ asset-management arm — who converted his Omega Advisors hedge fund into a family office in 2018 — said the jarring shift from quantitative easing (QT) to tightening (QT) has combined with other growth headwinds to lay the groundwork for an economic slump.”I’ve been of the view that the price of oil, the strong dollar, QT, and the Fed will push us into recession,” Cooperman said. Some parts of the economy are already contracting, but a broader downturn has been delayed by the sheer scale of public spending, he continued.Cooperman also rang the inflation alarm, saying the pace of wage increases — a key driver of price growth — was unlikely to slow markedly given the tight US labor market. Inflation has cooled from a 40-year high of over 9% last summer to b …
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