Tepper Warns Fed Against Excessive Easing, Expresses Misery Over High Stock Valuations

Billionaire investor David Tepper, founder of Appaloosa Management, recently returned to CNBC's "Squawk Box" on September 18, 2025, to offer his latest market insights, cautioning the Federal Reserve against over-easing interest rates despite acknowledging a "good year" for his firm. Tepper, also owner of the Carolina Panthers and Charlotte FC, discussed his updated views on China, economic stimulus, and artificial intelligence, alongside his trading strategies for Nvidia.

Tepper articulated a nuanced position on the current market, stating, "I'm constructed because of the easing right now, but I'm also miserable because of the levels." He emphasized that while a few rate cuts from the Fed could be beneficial, excessive easing risks pushing the economy into "danger territory" by potentially reigniting inflation and creating asset bubbles. This perspective follows the Fed's recent decision to cut interest rates for the first time in nine months.

The hedge fund titan elaborated on his investment approach, noting his firm's continued, though fluctuating, position in Nvidia. "I do own Nvidia, but I go back and forth a little bit... trade a little bit," Tepper said, indicating active management rather than a static large holding. He also touched upon the "Big Beautiful Bill" and the U.S. taking a stake in Intel, expressing reservations about government intervention in markets.

Tepper's latest appearance built on previous "Squawk Box" discussions, including a notable interview 15 years prior where he detailed a $7 billion earning year, and a return one year ago to share his views on China and AI. He acknowledged his firm's positive performance, particularly regarding China-related trades, stating that his previous call on China "turned out to be half decently good." Despite the market's high valuations, Tepper affirmed his commitment to not "fight the Fed" in the near term.