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Icahn says economic system breaking attributable to inflation, poor company steering

Carl Icahn on the sixth annual CNBC Institutional Investor Delivering Alpha Convention on September 13, 2016.

Heidi Gutman | CNBC

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

“The system is breaking down, and we completely have a serious drawback in our economic system right now,” Icahn stated 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 adjustments to company coverage. He credited his success to his capability to make the most of questionable governance on the company stage.

“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 now … It is actually horrible what you discover,” Icahn stated.

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

“I feel Powell actually has to boost rates of interest prior to later,” Icahn stated. Inflation is the worst factor the economic system can have…. I do not assume you may have a alternative. When you do not maintain happening, I actually consider that the issue of inflation can change into such that it’s extremely, very troublesome to get out of it.”

Inflation rose once more in February with the patron worth index rising 0.4%. The annual inflation charge is now at 6%, which is able to possible maintaining the Consumed observe for an additional rate of interest hike subsequent week, regardless of current banking trade turmoil.



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