Famed investor Carl Icahn believes the US economy is in trouble because of poor corporate leadership and stubbornly high inflation.
“The system is breaking down and we have a big problem with our economy today,” Icahn said on CNBC’s “Closing Call” on Tuesday. “One of the worst countries in the world for corporate governance.”
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Icahn has long been an activist investor and corporate raider, profiting from changes in corporate policy. He attributed his success to his ability to take advantage of skepticism at the corporate level.
“Leadership is worse than average. That’s why we’ve been successful. I mean, not because we’re geniuses, but because you come into the company today… What you find is really scary,” Icahn said.
Meanwhile, Icahn said another major problem in the economy right now is rising inflation, and the Federal Reserve has no choice but to raise rates to lower it.
“I think Powell really needs to raise interest rates sooner rather than later,” Icahn said. Inflation is the worst thing about the economy….I don’t think you have a choice. If you don’t continue, I believe the problem of inflation will be very difficult to get out of.
Inflation increased again in February, the consumer price index increased by 0.4%. The annual inflation rate is now at 6%, which is likely to keep the Fed on track for another interest rate hike next week despite recent turmoil in the banking industry.