Icahn says economy is collapsing on inflation, poor business guidance

Carl Icahn at the sixth annual CNBC Institutional Investor Delivery Alpha Conference on September 13, 2016.

Heidi Gutman | CNBC

well-known investors Carl Icahn Argues that the U.S. economy is in trouble because of poor corporate leadership and high inflation.

“The system is breaking down and we absolutely have a major problem with our economy today,” Icahn said on CNBC, “close the doorbell“Tuesday.” “One of the worst countries in the world in terms of corporate governance.”

Icahn has long been an activist investor and corporate predator, profiting by forcing changes in company policy. He attributes his success to his ability to capitalize on problematic governance at the corporate level.

“Leadership is worse than mediocrity. That’s why we’re so successful. I mean, not because we’re geniuses, but because you go into a company today…and what you find is really scary, ’ said Icahn.

At the same time, Icahn said that another major problem in the current economy is the soaring inflation rate, and the Fed has no choice but to continue raising interest rates to curb inflation.

“I think Powell really has to raise rates soon,” Icahn said. Inflation is the worst thing that can happen to an economy… I don’t think you have a choice. If you don’t keep going, I really believe the inflation problem is going to be very, very hard to get rid of. “

Inflation rises again in February The consumer price index rose 0.4%. Annual inflation is now at 6%, which could keep the Fed on track to raise rates again next week despite recent turmoil in the banking sector.

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