Einhorn says Fed stimulus counterproductive

(Reuters) - David Einhorn, founder and president of hedge fund Greenlight Capital, told CNBC on Tuesday that the U.S. Federal Reserve's economic stimulus program was counterproductive.

Einhorn, known for his prescient call against Lehman Brothers, also said he still favored Apple Inc.

He said low interest rates as a result of the Fed's economic stimulus were "depressing" and kept savers from generating income.

"I think it's actually counterproductive," Einhorn said of the stimulus program, adding that it lowers the standard of living and drives up food and oil prices. He said he would suggest a rise in interest rates on U.S. Treasury bonds to "a reasonable level" of 2 to 3 percent.

Einhorn said Apple, which he praised at this year's Ira Sohn investing conference, was "the best big-growth company we have."

"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 said. "I think the stock is very very substantially undervalued."

He said Amazon.com Inc was "tough on its competitors" because it does not "feel the need to make a profit."

"It's very hard to compete against somebody who doesn't feel the need to make a profit," he said, adding that he is not "short" Amazon.

(Reporting by Sam Forgione in New York; Editing by Lisa Von Ahn and John Wallace)