March 24, 2022: -On Monday, Famed investor Carl Icahn said an economic downturn could be on the horizon, and he is loading on protection against a steep sell-off in the market.

“I think there 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 against the long positions, and we try to be activists 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 significant threat to the economy, as the Russia-Ukraine war only added more uncertainty to his outlook.

The Federal Reserve raises interest rates for the first time in more than three years to battle inflation that is running at its highest level in 40 years. Fed Chairman Jerome Powell this week vowed stern action on soaring prices, indicating he’s open to rate hikes above the traditional 25 basis points.

“I don’t know if they can engineer a soft landing,” Icahn said. “I think there will be a rough landing; Inflation is a terrible thing when it gets going.”

Icahn, a longtime activist investor and calling corporate raider, said he believes the system of company boards needs to be fixed, and weak management could lead to disasters.

“There’s no accountability in Corporate America. You have some excellent companies and some outstanding CEOs, but far too many are not up to the task,” the long time activist investor said.

Icahn said that he bets against malls and commercial real estate to position for a recession in America.