Home > Economics, Finance > Buffett Calls Federal Reserve History’s Greatest Hedge Fund

Buffett Calls Federal Reserve History’s Greatest Hedge Fund

Friday, September 20th, 2013 Leave a comment Go to comments

At a speaking event held yesterday at Georgetown University in Washington, billionaire investor Warren Buffet compared the U.S. Federal Reserve to a hedge fund because of the central bank’s ability to profit from bond purchases while accumulating a balance sheet of more than $3 trillion.

According to Buffet, “[t]he Fed is the greatest hedge fund in history,” and is generating “$80 billion or $90 billion a year probably” in revenue for the U.S. government. “And that wasn’t the case a few years back,” he said.

More from Buffet:

The Fed “is under no pressure, none whatsoever to have to deleverage,” Buffett said. “So it can pick its time, and if you have somebody wise there — and I think Bernanke is wise, and I certainly expect his successor to be — it can be handled. But it is something that’s never quite been done on this scale. It will be interesting to watch.”

Source: Bloomberg

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