Investing

Leon Cooperman: Trump is pulling market gains forward by trying to boost stocks before the election

Key Points
  • President Trump is trying to boost stock market gains as he seeks reelection in 2020, says the legendary investor.
  • "My guess is we're doing a lot of things that are pulling demand forward," says Cooperman.
  • "I think what the president should do is take a victory lap" on Fed rates, he adds.
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Cooperman: Trump trying to boost stocks before election

President Donald Trump is trying to boost stock market gains as he seeks reelection in 2020, legendary investor Leon Cooperman told CNBC on Wednesday.

"The president is very intent on getting the stock market up," said Cooperman, who runs Omega Advisors. "My guess is we're doing a lot of things that are pulling demand forward." Earlier this year, the billionaire closed Omega to outside investors.

Trump has been calling on the Federal Reserve to cut interest rates while repeatedly criticizing central bank Chairman Jerome Powell for raising rates four times last year.

The president had also reportedly looked into ways to weaken the dollar to help boost the economy before next year's election. However, on Friday, top Trump economic advisor Larry Kudlow and two senior administration officials confirmed that the president decided not to intervene in currency markets.

Cooperman spoke to CNBC before the Fed's widely expected decision Wednesday afternoon to cut rates for the first time in more than a decade.

"I think what the president should do is take a victory lap" on rates, said Cooperman, pointing out that Trump was adamantly against the December hike. "Whether Powell caved into Trump? Who knows."