Carl Icahn speaks at Delivering Alpha in New York on September 13, 2016.

David A. Grogan | CNBC

Longtime activist investor Carl Icahn said Monday that US markets could see major challenges in the long run, given the excessive money supply and rising inflation.

“In the long term, we will surely hit the wall,” Icahn said on Monday in CNBC’s “Fast Money Halftime Report”. “I really believe there will be a crisis, how we do it, how we print money, how we get into inflation. If you look around, you see inflation everywhere and I don’t know how to handle it in the long run. “

The US Federal Reserve and Congress have released trillions of dollars in incentives to save the economy from the Covid-19 pandemic. The central bank’s balance sheet has risen by more than $ 3 trillion as part of its perpetual quantitative easing program, while the government has provided over $ 5 trillion in incentives to help Americans through the health crisis.

Icahn insisted not to make a market timing call, but he believes the markets will one day pay the price for this policy.

Based on these unprecedented stimulus programs, the S&P 500 quickly made up for the losses caused by the pandemic and has rebounded to a new record high. The stock benchmark is up more than 19% in 2021, just 1.4% below its all-time high from early September.

The massive amount of money has partly contributed to increasing price pressure in the economy. Inflation hit a new 30-year high in August due to supply chain disruptions and exceptionally high demand.

The core consumer spending index, which excludes food and energy costs and is the Fed’s preferred inflation measure, rose 0.3% for the month, up 3.6% year over year.

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