Amid further calls from President Donald Trump to cut interest rates, millionaire investor Carl Icahn said he did not consider anything as easy as the rate reductions could fix the US economy’s mostly Chinese trade war issues.
Trump said on Thursday that he was not thrilled with a powerful U.S. dollar and that we need “significant” reductions to the Fed rate “to enable our businesses to compete with each other.”
To some extent Icahn disagrees, contending it’s not that easy and Carl Ichan sounds to completely disagree with the fact of this from the roots.
“There are many distinct pressures on the Fed. I won’t get into politics or that, but I believe it’s just like cutting prices — you have a poor headache and you take aspirin, but the headache may not go away. The Oder, perhaps you have something worse and you bring it,” Icahn said during an interview on Thursday’s Fast Money Halftime Report. “I don’t believe the solution is simply reducing prices. If it was that simple, you would never have these cycles— and in a capitalist scheme, you have them. You’ve got those cycles. I believe there’s a danger in what’s happening, definitely with China.
“The Chinese issue is not just having repercussions on us, it has repercussions across the globe,” Icahn said. “The US needs to’ settle China’s issue,’ he said. “And I’m not going to get into politics and I comprehend the reasons. But on the other side, there are powerful reasons for settling this. “Icahn showed Europe and how it cut prices, not gaining much development, to demonstrate his point.
“There’s an argument for the reduction of prices, but you look at Europe, the prices are reduced to negative and the economy is examined,” he said. “I don’t believe that’s the final solution to the issue, therefore. I hope (the war of trade is) resolved. I hope they’re going to create an agreement and get that resolved earlier than later. I guess Donald (Trump) would like to see it resolved and I hope it is. And I believe settling is very crucial.
“And look, China, too, has caused. Here’s not only a one-way street. With two great powers, I just believe they’ll find a way to get anything accomplished. “Icahn is chairman of Icahn Enterprises, a diverse holding company with a market cap of $14.79 billion. Investment, car, power, mining, food packaging, metals, real estate, and home fashion.