Icahn says the economy is collapsing due to inflation and poor corporate governance

Famed investor Carl Icahn believes the US economy is struggling due to poor corporate governance and persistently high inflation.

“The system is collapsing and we absolutely have a huge problem in our economy today,” Icahn said on CNBC’s Closing Bell on Tuesday. “One of the worst countries in the world in terms of corporate governance.”

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Icahn has long been an activist investor and corporate robber who profits from forcing changes in corporate policy. He credited his success to his ability to exploit questionable corporate governance.

“Leadership is worse than mediocre. And that’s why we’re so successful. I mean, not because we’re geniuses, but because you go into a company today… It’s really awful what you find,” Icahn said.

Meanwhile, Icahn said another major problem in the economy right now is rising inflation and the Federal Reserve has no choice but to keep raising interest rates to dampen it.

“I think Powell really needs to raise rates sooner rather than later,” Icahn said. Inflation is the worst thing the economy can have… I don’t think you have a choice. If you don’t go ahead, I really think the problem of inflation can get so big that it’s very, very difficult to get out of.”

Inflation rose again in February, with the CPI up 0.4%. Annual inflation is now at 6%, which is likely to keep the Fed on track for another rate hike next week despite the recent turmoil in the banking sector.