Longtime investor Carl Icahn doubts that cutting interest rates can simply solve the problems facing the economy, including the US-China trade war.
"I don't think just lowering rates is the answer," said Icahn. "If it were so easy, we would never have economic cycles.
"There is some logic behind the rate cuts, but if you look at Europe, I mean they cut their interest rates to negative values and look at the economy there, so I don't think that's the definitive answer to the problem," says the billionaire investor.
The Federal Reserve cut interest rates for the first time in more than a decade last month, citing global development and subdued inflation. Fed Chairman Jerome Powell described the decline as a "mid-cycle adjustment" rather than the start of a long cycle of reductions.
Icahn Enterprises chairman believes it is important to reach a trade resolution with China in order to maintain a record long-term economic expansion in the US.
"I think you really need to solve the problem with China. ... The problem with China is not just fixing things for us, it has consequences all over the world, "Icahn said." I hope it is settled. I really hope they make a deal and understand each other as soon as possible . "
The US and China have been fighting a trade battle for two years. Tensions escalated this month after President Donald Trump ended the ceasefire by striking additional tariffs on Chinese goods. China immediately retaliated by stopping US purchases of agricultural commodities and using its currency as a weapon.
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