Tags: carl icahn | cut | rates | fed

Icahn: Rate Cut Isn't Fed's 'Easy' Answer to All Problems

Investment guru Carl Icahn (Michael Nagle/Getty Images)

By    |   Thursday, 08 August 2019 01:34 PM

Investment guru Carl Icahn doesn’t think rate cuts can easily solve the nation’s economic woes.

 “I don’t think just lowering rates is the answer... if it were that easy, you’d never have these cycles,” Icahn told CNBC.

 “There is an argument for cutting rates, but you look at Europe, I mean they cut their cuts to negative, and look at the economy over there, so I don’t think that’s the final answer to the problem,” the billionaire investor said.

The Federal Reserve cut interest rates for the first time in more than a decade last month, citing global developments and muted inflation, CNBC.com explained. Fed Chief Jerome Powell described the cut as a “midcycle adjustment,” not the beginning of a lengthy cutting cycle.

The Icahn Enterprises chairman believes it’s important to reach a trade resolution with China to sustain the U.S. recordlong economic expansion.

“I think you really have to settle the China problem...the China problem is not just having repercussions for us, it has repercussions throughout the world,” Icahn said. “I hope it’d settle. I really hope they’d make a deal and get that settled sooner than later.”

Icahn spoke just hours after President Donald Trump on Thursday again expressed dissatisfaction with the strength of the U.S. dollar, saying the Federal Reserve’s interest rates were harming American manufacturers, Reuters explained.

“The Fed’s high interest rate level, in comparison to other countries, is keeping the dollar high, making it more difficult for our great manufacturers like Caterpillar, Boeing, John Deere, our car companies, & others, to compete on a level playing field,” Trump said in a series of posts on Twitter.

The Republican president has for months been calling on Fed Chairman Jerome Powell and Fed policymakers to lower interest rates to support the U.S. economy.

At the end of July, Fed policymakers cut interest rates for the first time since 2008.

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Economy
Investment guru Carl Icahn doesn’t think rate cuts can easily solve the nation’s economic woes.
carl icahn, cut, rates, fed
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2019-34-08
Thursday, 08 August 2019 01:34 PM
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