On CNBC’s “Closing Bell Overtime,” investor Carl Icahn warned that a “recession or even worse” could be coming. He said that surging inflation is a major threat to our economy and that the Russia-Ukraine war is only adding to economic uncertainty. Icahn also doesn’t have faith that the Fed will be able to gracefully fight inflation. “I really don’t know if they can engineer a soft landing. I think there is going to be a rough landing… Inflation is a terrible thing when it gets going.” He’s not alone in that sentiment. Almonty Industries CEO Lewis Black told Kitco News that if the Fed doesn’t take control of inflation soon and quickly, it could take a decade to get it under control. “They have to get inflation under control. If it gets out of control, it can take you a decade. It is imperative to act now — stop spending money and reduce the amount of money you circulate as a government. And they need to raise rates. That’s the only tool that works.”
Carl Icahn says there ‘very well could be a recession or even worse’
Famed investor Carl Icahn said Tuesday an economic downturn could be on the horizon and he is loaded on protection against a steep sell-off in the market.
“I think there very well could be a recession or even worse,” Icahn said on CNBC’s “Closing Bell Overtime” to Scott Wapner. “I have kept everything hedged for the last few years. We have a strong hedge on against the long positions and we try to be activist to get that edge… I am negative as you can hear. Short term I don’t even predict.”
The founder and chairman of Icahn Enterprises said surging inflation is a major threat to the economy, while the Russia-Ukraine war only added more uncertainty to his outlook.
Read the full story, here.
Proactive Investors/Tharun George
Gold prices may rise further as investors seek safe haven amid market volatilities
Goldman Sachs recently raised its 2022 gold price target to US$2,500 per ounce, citing a perfect storm of increased investor and central bank demand amid economic and geopolitical uncertainty.
The rush to safe-haven investments due to ongoing market volatility triggered by the Russia-Ukraine crisis is expected to push gold prices higher.
Gold prices are also likely to react to the tightening of monetary policy by central banks as they try to control surging inflation.
You can read the full story, here.
Kitco News/Anna Golubova
It could ‘take a decade’ to get inflation under control if Fed fails – Almonty Industries CEO
The world is staring down the barrel of high inflation, slower economic growth, and commodities shortages. And if the Federal Reserve fails to get things under control, the problem could take years to fix, according to Almonty Industries CEO Lewis Black.
The war in Ukraine is directly contributing to the latest inflation surge. But it is important to remember that many commodities were already near record highs even before Russia invaded Ukraine, Black told Kitco News.
“We already had disruptions, and governments worldwide have printed so much money. When you inflict on the economy so much money, it creates inflation. The fashion right now is to blame Putin. And some commodities have rallied on the back of the invasion. But some were already at all-time highs or near those highs before that,” he said. “Inflation is going to ultimately continue. The first step to recovery is an acknowledgment of your problem. And until that happens, things will continue to spiral out of control.”
You can read the full article, here.