{"id":2905,"date":"2026-02-11T19:17:26","date_gmt":"2026-02-11T19:17:26","guid":{"rendered":"https:\/\/finzexpert.com\/blog\/david-einhorn-says-the-fed-will-cut-substantially-more-than-two-times-so-hes-betting-big-on-gold\/"},"modified":"2026-02-11T19:17:26","modified_gmt":"2026-02-11T19:17:26","slug":"david-einhorn-says-the-fed-will-cut-substantially-more-than-two-times-so-hes-betting-big-on-gold","status":"publish","type":"post","link":"https:\/\/finzexpert.com\/blog\/david-einhorn-says-the-fed-will-cut-substantially-more-than-two-times-so-hes-betting-big-on-gold\/","title":{"rendered":"David Einhorn says the Fed will cut ‘substantially more’ than two times. So he’s betting big on gold"},"content":{"rendered":"\n
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Greenlight Capital’s David Einhorn anticipates the Federal Reserve will issue more interest rate cuts this year than what’s being anticipated and that’s giving him greater confidence in his gold bet.<\/p>\n

While rate cut expectations diminished a bit Wednesday following the much better-than-expected January jobs report, traders are still currently pricing in a more than 88% chance that the central bank will make two quarter percentage point cuts by the end of the year, according to the CME FedWatch Tool.<\/p>\n

But Einhorn said that the market viewing the latest jobs figures as a reason not to cut is “wrong.” In fact, he thinks the rate cuts number could be higher than that, as he expects Kevin Warsh \u2013 President Donald Trump’s pick to succeed Jerome Powell as Fed chair \u2013 is going to be able to persuade the committee to do so.<\/p>\n

“If we have 4% or 5% inflation, sure, then he won’t be able to persuade people, but otherwise he’s going to argue productivity,” Einhorn said on CNBC’s “Money Movers” to Sara Eisen on Wednesday, adding that Warsh, in his view, is going to take the position of cutting “even if the economy is running hot.”<\/p>\n

“I think by the time we get to the end of the year, it’s going to be substantially more than two cuts,” he continued.<\/p>\n

The hedge fund manager also owns gold, which sold off at the end of last month after Trump announced Warsh as his nominee for Fed chair, as the move eased anxieties on Wall Street surrounding Fed independence.<\/p>\n

The yellow metal \u2013 typically viewed as an inflation hedge \u2013 has since seen some recovery, with gold futures being up more than 17% this year. That’s after it surged more than 60% in 2025 amid threats to central bank independence as well as heightened geopolitical tensions and unstable trade policy. Since 2024, it’s surged more than 120%.<\/p>\n<\/div>\n

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