Hedge fund manager Einhorn bets on the Fed cutting interest rates significantly, calling it "one of the best trades."

Hedge fund manager David Einhorn is betting that the Federal Reserve, under Kevin Warsh's leadership, will cut interest rates by a much larger extent than what the market is currently predicting. The co-founder of Greenlight Capital stated that he has bought secured overnight financing rate futures, betting that if the Federal Reserve lowers borrowing costs more aggressively, the related contracts will rise. "I think one of the best trades right now is betting that this year's rate cuts will exceed expectations," Einhorn said in an interview on Wednesday. "I believe that by the end of the year, the number of rate cuts will be far more than just two."