Carl Icahn warns US economy could tip into ‘recession or worse’

Carl Icahn, the billionaire investor and corporate raider, said that the American economy could be in for a “recession or even worse” as policymakers struggle to bring rapid inflation under control.

“I have kept everything hedged for the last few years,” the founder and chairman of Icahn Enterprises said.

“We have a strong hedge on against the long positions and we try to be activist to get that edge … I am negative, as you can hear. Short-term I don’t even predict.”

Icahn sounded a pessimistic note as to whether Fed Chair Jerome Powell’s plan for further rate hikes will soften the blow of inflation.

“I really don’t know if they can engineer a soft landing,” Icahn said.

“I think there is going to be a rough landing … Inflation is a terrible thing when it gets going.”

Icahn said the possible economic downturn could prompt America’s leading businesses to take stock of their management structures.