Carl Icahn, the founder and chairman of Icahn Enterprises and a prominent investor, said Tuesday that recession and rising inflation are the main threats to the economy. Meanwhile, Russia’s military special operation in Ukraine has only added more uncertainty to his forecast, CNBC writes.

“I think a recession or even something worse is quite possible,” Icahn said. – For the last few years, I’ve been hedging all the time. We have a strong hedge against long positions, and we’re trying to get that advantage … But I’m negative and I’m not even making a prediction in the short term.”

Recall that the U.S. Federal Reserve recently raised interest rates for the first time in more than 3 years in an attempt to combat inflation, which has reached its highest level in 40 years. Fed Chairman Jerome Powell this week promised to take tough action on rising prices, indicating that a rate hike of more than the traditional 25 basis points was possible.

“I don’t know if they can engineer a soft landing,” Icahn said. – But I think it’s going to be a hard landing … Inflation is a terrible thing.”

According to the billionaire investor, the problem in the U.S. is that the entire management system in companies needs fixing, and weak management can lead to disasters.

“There is no accountability in corporate America. There are some very good companies, very good CEOs, but too many that are failing,” the investor said.

To prepare for a recession, Icahn said he is betting on shopping centers and commercial real estate.