Billionaire investor Carl Icahn. Adam Jeffery/CNBC/NBCU Photo Bank/NBCUniversal via Getty Images
CNBC's Carl Icahn said Monday that excessive money printing by Fed and high inflation would spell trouble long-term.
As wholesale and retail prices remain at multi-year highs, the billionaire investor spoke out.
He stated that he does not invest in bitcoin, but crypto could be worth something if inflation is "rampant."
Stocks will eventually face a "crisis" as the US government and Federal Reserve unleash an excessive money supply, according to billionaire investor Carl Icahn.
He said, "In the long-term, we are certain to hit the wall." "I believe there will be a crisis because of the way that we are printing money and the way that we are inflating the market. You can see the effects of inflation around you if you take a look at yourself. I don't know how to deal with it long-term.
Two White House administrations and the central bank of the United States were forced to inject trillions of dollars into the financial sector after the outbreak of COVID-19 last year. To keep families afloat, lawmakers passed $5 trillion worth of federal aid to the US.
Inflation has risen to new heights, with wholesale and consumer prices reaching multi-year highs thanks to the boom in money supply. These pressures are also caused by supply-chain bottlenecks, and labor shortages. In September, the consumer price index climbed to 5.3% while wholesale inflation soared to 8.6%.
Despite the high price of bitcoin, Icahn admitted that it has great potential. CNBC reported that he didn't know bitcoin and that his company, Icahn Enterprises invests in the most-traded cryptocurrency.
He said that it could be worth something in the face inflation.
"If inflation becomes rampant, then I suppose it has value. But will inflation become rampant? Or will the government intervene like they did in China to stop inflation? He said.
Icahn said that there are so many variables it is very difficult to invest in.
The bitcoin price has risen in recent days due to the debut of the first ever US-based exchange-traded fund linked to bitcoin. ProShares, an ETF provider, is behind the launch. The price of bitcoin jumped to $61,000 during Monday's session.
