Very well it could be a recession or even worse

“Very well, it could be a recession or even worse,” said Carl Icahn.

Well-known investor Carl Icahn said Tuesday that the recession could be imminent and that he is focusing on protecting against a plunge in the market.

Icahn told Scott Wappner about CNBC’s “Closing Bell Overtime.” “I’ve been hedging everything over the last few years. We’re doing strong hedging against long positions and we’re trying to be an activist to gain that advantage … you hear I’m negative as I can. Predict. “

The founder and chairman of Icahn Enterprises said the surge in inflation was a major threat to the economy, but the war between Russia and Ukraine only added more uncertainty to his outlook.

The Federal Reserve has raised interest rates for the first time in more than three years to combat inflation, which has been at its highest level in 40 years. This week, Fed Chair Jerome Powell has vowed to take harsh action against rising prices. This shows that he is ready to accept a higher rate hike than the traditional 25 basis points.

“I really don’t know if they can design a soft landing,” Icahn said. “I think a rough landing will happen … when it goes on, inflation is terrible.”

Long-time activist investor and so-called corporate intruder Icahn said he believes the company’s board system needs to be modified and that weak management can lead to disasters. rice field.

A longtime activist investor said, “American companies are not accountable. There are very good companies and CEOs, but too many companies can’t do their job.”

Icahn said he is betting on stores and commercial real estate to prepare for the recession in the United States.