- Billionaire investor Carl Icahn expects the US recession or “worse”.
- Icahn told CNBC he wasn’t sure if the Fed could design a “soft landing” when tackling high inflation.
- To protect against the possibility of a recession, Icahn is betting on malls and commercial real estate.
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Billionaire investor Carl Icahn believes the United States is heading into recession or worse as the economy fights high inflation and the threat of Russia’s war with Ukraine.
“I think it’s very likely that the economy will go into recession or worse,” Icahn Enterprise’s chairman told CNBC’s Scott Wappner in an interview Tuesday.
A recession is a period of significant recession that lasts for more than a few quarters throughout the economy. This is seen in the slump in GDP.
“I’ve been hedging everything for the past few years,” he added. “We have a strong hedge against long positions and strive to be an activist to gain that advantage … I’m negative as you can hear. Short term In the end, I don’t even predict. “
Activist investors with an estimated net worth of $ 22.7 billion have taken significant shares in the company to completely review its board of directors or pave the way for more shareholder interests. Known for buying.
Faced with a potential recession, Icahn has a huge position in malls and commercial real estate.
“The facts can’t be ignored — and I’m not sure if this is a continuing change — but obviously you don’t always go to the office anymore,” he said.
Soaring inflation was already a significant threat to the US economy, but the war in Russia only worsened the outlook, he said.
Last week, the Federal Reserve took the biggest step towards cooling inflation by raising benchmark rates by 0.25 percentage points and ending the two-year near-zero interest rate.
This week, Fed Chair Jerome Powell released comments that prompted bond and stock market sales, suggesting more aggressive rate hikes as needed.
“I really don’t know if they can design a soft landing,” Icahn said of the Fed. “I think there is a rough landing.”
Activist investors have pointed out that supply chain problems continue to drive sustainable inflation.
“Inflation is terrible when it happens. It’s not easy for you to put the genie back in the bottle,” he said. “In the last 20 or 30 years … you have received cheap goods from the Far East, certainly from China, and even from Russia.”
“And I think those eras are over, and you add another problem to your inflation situation as this war is happening now.”
Icahn has predicted economic problems for some time, saying in February that the Fed’s monetary printing “party” would end badly because it couldn’t control inflation. He doesn’t know when that will happen.
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