Star hedge-fund manager David Einhorn, who has taken on everything from Lehman Brothers to Chipotle Mexican Grill, has now set his sights on much bigger prey: Federal Reserve Chairman Ben Bernanke.
Einhorn criticized the Fed’s monetary-easing policy yesterday, saying it is “actually turning out to be a drag” on the economy.
The attack on Bernanke is a new tack for the 43-year-old investor, whose usual targets are overvalued companies — not monetary policy makers.
Einhorn, speaking at a New York conference sponsored by the Economist, said the Fed’s easing has led to over-investment in commodities.
Einhorn recommended the Fed raise rates but said the market should be forewarned. Otherwise, “some derivatives books would probably blow up,” he said.
The audience of economists and policy wonks were not impressed.
“I trust Bernanke’s overall knowledge more than I would Einhorn’s,” said William Gibson, COO of ING Investment Management of the Netherlands.