“Billionaire investor Warren Buffett told CNBC that if the Federal Reserve were to increase its massive bond-buying program that would be “pretty extraordinary.”
In an interview that aired on “Squawk Box” Friday, the Berkshire Hathawaychairman and CEO said, “Basically [the Fed] is buying the debt we’re creating and to go beyond that is an awfully big number.”
After their latest meeting, Fed policymakers said Wednesday that interest rates will remain at historically low levels, while the central bank will not alter its $85 billion a month asset-purchasing program known as quantitative easing.
There was one notable change in the language used in the statement from the Fed—a declaration that it would increase or decrease the pace of its asset purchases depending on economic conditions.
Buffett said he thought that Fed Chairman Ben Bernanke “feels he needs a little help from elsewhere.” In the past, Bernanke has urged Washington to reach a deal to reduce the nation’s debt burden.
“But the economy is improving,” Buffett stressed, “not [at] a very rapid clip, but this country has done well since 2008, certainly compared to much of the world.”…”
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