Core Viewpoint - Hedge fund billionaire David Tepper expressed concerns that while the Federal Reserve may cut rates further, excessive cuts could lead to inflation and economic risks [1][2]. Group 1: Federal Reserve Actions - The Federal Reserve recently lowered interest rates by a quarter point, marking the first cut of the year, with indications of two more reductions to follow [2]. - Tepper warned that cutting rates without fully controlling inflation could lead to increased demand outpacing supply, potentially reigniting price pressures [2]. Group 2: Market Valuations and Investment Strategy - Tepper acknowledged that market valuations are high but indicated he would not short stocks while the Fed is in an easing phase, suggesting a cautious approach to investment [3]. - He noted the challenge of not owning stocks given the Fed's anticipated further cuts, despite concerns over high multiples [3].