The US economy is going downhill and the Federal Reserve is to blame, according to Carl Icahn.
The billionaire investor said about the economic outlook during MarketWatch's "best new ideas in money festival" on Wednesday.
Icahn said that inflation is a terrible thing. It's not possible to cure it.
Icahn said that years of loose monetary policy flooded the US economy with cheap cash and caused rampant speculation. He thinks those days are over.
He said the party would never end because they printed up too much money. The party is done.
The Fed raised its benchmark interest rate by 75 basis points. He would have supported a bigger hike of 100 basis points.
The activist investor said he sees a lot of assets trading at attractive prices and expects them to get even cheaper as markets head lower. CVR Energy is an oil refiner and a manufacturer offertilizer.
Several of the key issues afflicting financial markets and the economy were brought to Icahn's attention earlier this year. He warned in January that asset valuations were out of whack and that the Fed would cause an inflation problem by injecting more money into the economy.
He said in February that he expected the whole thing to hit the wall. He was talking about the Fed's easy money policies.
In March, Icahn said that Russia's invasion of Ukraine would make it harder for the Fed to beat back inflation without hurting the economy.
Icahn won't be surprised that stocks, cryptocurrencies, and other assets have plunged this year and that inflation is close to a 40-year high.
'Don't just buy the dip': How to adjust your portfolio to benefit from the Fed's rate hikes and rising inflation.'
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