Fed Should Raise Interest Rates to 2-3 Percent: Einhorn

Low interest rates are counterproductive and the Federal Reserve should raise rates to 2-3 percent, David Einhorn, Greenlight Capital founder, told CNBC’s “Squawk Box.”

“I think having very low zero rates is depressing to people,” Einhorn said. “I think it deprives savers of reasonable incomes, the ability to forecast a reasonable income, and it cuts down on consumption.”

He also said low rates drive up food and oil prices and lowers standards of living.

Turning to stocks, Einhorn remains bullish on Apple which he said is substantially undervalued. “I think it's the best big growth company we have,” he said. “And it trades at a multiple below the average in the S&P 500.” (Related: Inventions That Killed Businesses).

Einhorn added, “We're two, three years into the Apple investment and the way it seems headed it's likely we'll be there for a good while longer.”

He also said Amazonis hard to compete against because it “doesn’t seem to feel compelled to make a profit.” However, he added, “It doesn’t say anything about Amazon one way or the other.”

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