Billionaire investor Carl Icahn believes it’s time for the Federal Reserve to increase the interest rate.
The fed will announce its decision on Thursday and during an interview with Fox Business the outspoken investor said, “We are building a huge asset bubble by keeping interest rates down here. So I think they have to.”
He then added, “You can’t keep interest rates at this level and have a balance sheet of four trillion. But I do think the Fed did a great job in ‘08 in saving the country so I’m not really saying I’m against the Fed but I think now they’ve gone too far the other way, by far.”
Many analysts believed the federal reserve would rate the rate in September, then the global-market changed, China’s businesses lost a tremendous amount of market valuation, Greece imploded, and the world’s second-largest economy devalued its own currency.
The change in the global landscape led many bankers to push back their rate hike expectations until late 2015 and early 2016.
Icahn also through his support behind Donald Trump ahead of Wednesday’s second GOP debate. He says Trump has “hit a very important nerve” with American voters.
“I think a lot of what [Trump] says has to be done in this country or we’re going have real problems. We may have them anyway,” Icahn said.
“The argument that he’s not a politician works in his favor, not against his favor,” Icahn said.