Icahn states economy breaking due to inflation, bad business assistance

Inflation is the worst thing an economy can have, says billionaire investor Carl Icahn

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Famed financier Carl Icahn thinks the U.S. economy remains in difficulty due to the fact that of bad business management and stubbornly high inflation.

“The system is breaking down, and we absolutely have a major problem in our economy today,” Icahn stated on CNBC’s “Closing Bell”Tuesday “One of the worst countries in the world as far as corporate governance.”

Icahn has actually been a long time activist financier and business raider, making benefit from requiring modifications to business policy. He credited his success to his capability to benefit from doubtful governance at the business level.

“Leadership is worse than mediocre. And that’s why we’re so successful. I mean, not because we’re geniuses, but because you go into a company today … It’s really horrible what you find,” Icahn stated.

Meanwhile, Icahn stated another significant problem in the economy today is rising inflation and the Federal Reserve has no option however keep raising rates to squash it.

Watch CNBC's full interview with billionaire investor Carl Icahn

“I think Powell really has to raise interest rates sooner than later,” Icahn stated. Inflation is the worst thing the economy can have … I do not believe you have an option. If you do not keep going on, I actually think that the issue of inflation can end up being such that it’s extremely, extremely challenging to leave it.”

Inflation increased once again in February with the customer cost index increasing 0.4%. The yearly inflation rate is now at 6%, which will likely keep the Fed on track for another rates of interest trek next week, regardless of current banking market chaos.

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