Activist and billionaire investor Carl Icahn warns that the US is heading for recession

On Tuesday, Carl Icahn, a famous investor, claimed that the future of the US is in danger and is heading towards recession, and the root cause of this is the sky-high inflation and the Russia-Ukraine war.

Speaking with CNBC's Scott Wapner in an interview on Tuesday, Carl Icahn mentioned that he's unsure if the Fed can calmly tackle this situation of sky-high inflation. He thinks the Fed cannot handle the case softly, and there will be a "rough landing ." His exact words were, "I think they're very well could be a recession or even worse ."Even Fed Chair Jerome Powell has signaled that the interest rate can become more aggressively higher, as per the need of the situation.

When asked how to tackle this situation, Carl Icahn suggested betting against malls and commercial real estate. Further, he said that continuing supply-chain problems is a driving factor in persistent inflation.


Predictions regarding recession in the US and soft landing for Fed

With an estimated worth of $22.7 billion, Carl Icahn, the activist billionaire, predicts an economic downturn for the US. The billionaire even believes that things will be worse than a recession.

For quite some time now, Icahn has been predicting trouble for the economy. The Federal Reserve has raised its interest rate in three years to battle inflation for the first time. This rising inflation was an existing threat to the US economy, and the geopolitical tension between Russia and Ukraine has added fuel to the fire.

Seeing the current situation, the diversified investor and one of Wall Street's most famous and successful figures puts out his bet on real estate in this potential downturn. He also predicts some trouble in the economy for a while, and the Fed is likely to end badly regarding its money-printing party.

It is not confirmed when these changes will occur, but the billionaire feels that the Fed cannot control inflation.

Who Is Carl Icahn?

• He's one of the most successful investors in America.
• He's an activist billionaire.
• Icahn is well known for purchasing high stakes to either overhaul or set a new path for the company to deliver more share profit.
• He has shaken corporate America.
• He's also a corporate raider.

What is a recession in an economy?

A recession is the period of a significantly declining economy that lasts for more than just a few quarters. Recession can be seen in the collapse of the GDP. A recession results in fewer job opportunities leading to significant unemployment and decreased wages. This trend often leads to long-term issues for the entire economy.