Carl Icahn, a well-known investor and activist said Tuesday that an economic downturn was possible. He is armed with protection to prevent a sharp sell-off.

Icahn told CNBC that “there could very possibly be a recession” or “even worse.”Closing Bell OvertimeScott Wapner. I have had everything hedged over the past few years. To hedge against long positions, we have strong protections and try to make our position more activist. I am negative as you can hear. In the short term, however, I cannot even foresee.

Icahn Enterprises founder and Chairman stated that rising inflation was a serious threat to the economy. The Russia-Ukraine conflict only increased his uncertainty.

Federal Reserve raised interest rates for the first time in more than three years in an attempt to battle inflation that is running at its highest level in 40 years. Fed Chairmen Jerome Powell, Fed Chairman, this week pledged hard action to combat inflation. This indicates that he is open for a higher rate than 25 basis points.

“Corporate America has no accountability. The long-time activist investor stated that there are many fine companies with very talented CEOs. However, too many of them don’t have the ability to perform the job.

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