Carl Icahn says our economic system is breaking due to inflation and poor company management

Famed investor Carl Icahn believes the U.S. economic system is in hassle due to poor company management and stubbornly excessive inflation.

“The system is breaking down, and we completely have a significant drawback in our economic system right this moment,” Icahn mentioned on CNBC’s “Closing Bell” Tuesday. “One of many worst international locations on this planet so far as company governance.”

Icahn has been a longtime activist investor and company raider, making revenue from forcing modifications to company coverage. He credited his success to his means to make the most of questionable governance on the company degree.

“Management is worse than mediocre. And that is why we’re so profitable. I imply, not as a result of we’re geniuses, however since you go into an organization right this moment … It is actually horrible what you discover,” Icahn mentioned.

In the meantime, Icahn mentioned one other main subject within the economic system proper now could be surging inflation and the Federal Reserve has no selection however maintain elevating charges to squash it.

“I believe Powell actually has to lift rates of interest earlier than later,” Icahn mentioned. Inflation is the worst factor the economic system can have…. I do not assume you’ve gotten a selection. Should you do not maintain occurring, I actually consider that the issue of inflation can grow to be such that it is very, very troublesome to get out of it.”

Inflation rose once more in February with the buyer value index rising 0.4%. The annual inflation price is now at 6%, which is able to seemingly maintain the Ate up observe for an additional rate of interest hike subsequent week, regardless of latest banking business turmoil.