David Einhorn, founder of hedge fund Green Light Capital, said tariffs would force the Federal Reserve to act because Trump's higher-than-expected global tariffs shocked investors and caused the market to plummet. Einhorn is a veteran stock manager who was famous for shorting Lehman Brothers before the 2008 financial crisis. He said tariffs will “disproportionately” affect low-income people and will have an impact on inflation, leading to a slowdown in the economy. He expects the Fed to cut interest rates more than market expectations. Speaking about tariffs, Einhorn said, “They raised prices.” “If you levy tariffs, maybe the supplier must pay a portion, maybe the retailer must pay a portion, but the consumer must also pay a portion.”

David Einhorn, founder of hedge fund Green Light Capital, said tariffs would force the Federal Reserve to act because Trump's higher-than-expected global tariffs shocked investors and caused the market to plummet. Einhorn is a veteran stock manager who was famous for shorting Lehman Brothers before the 2008 financial crisis. He said tariffs will “disproportionately” affect low-income people and will have an impact on inflation, leading to a slowdown in the economy. He expects the Fed to cut interest rates more than market expectations. Speaking about tariffs, Einhorn said, “They raised prices.” “If you levy tariffs, maybe the supplier must pay a portion, maybe the retailer must pay a portion, but the consumer must also pay a portion.”