Carl Icahn speaks at Delivery Alpha in New York on September 13, 2016.
Long-term activist investor Carl Icahn said on Monday that the US market may face challenges in the long run in the face of loose monetary policy and rising inflation.
“In the long run, the market will one day… we will definitely hit a wall,” Icahn said in CNBC’s “Quick Money Midfield Report” on Monday. I really think that the way we move forward, the way we print money, the way we fall into inflation will all have crises. If you look around, you will see inflation everywhere, and I don’t know how you will deal with it in the long run. ”
The Federal Reserve and Congress have pushed stimulus measures to new heights to rescue the economy from the Covid-19 pandemic. In the open quantitative easing program, the central bank’s balance sheet inflated by more than US$3 trillion, and the government has allocated more than US$5 trillion in stimulus measures to support Americans through the medical crisis.
Icahn insists that he will not make market timing choices, but believes that in the long run, we will pay for these policies.
The large amount of money supply has to some extent led to rising price pressures in the economy. Due to supply chain disruption and exceptionally strong demand, the inflation rate in August hit a 30-year high.
The core personal consumption expenditure price index, which excludes food and energy costs and is the Fed’s preferred inflation indicator, rose 0.3% this month and 3.6% year-on-year.
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