"There isn't any alternative to USD as reserve currency": Warren Buffett
"It won't be the quantity of the national debt. There isn't any alternative to the dollar as a reserve currency," said Warren Buffet, Chairman and CEO of Berkshire Hathaway.
ANI
May 05, 2024 16:44 IST
Washington [US], May 5 (ANI): Legendary investor and American businessman Warren Buffett addressed concerns about the US debt and inflation during Berkshire Hathaway's annual meeting.
He emphasized the resilience of the dollar as a reserve currency and expressed confidence in the US economy despite the national debt.
"It won't be the quantity of the national debt. There isn't any alternative to the dollar as a reserve currency," said Warren Buffet, Chairman and CEO of Berkshire Hathaway.
He also praised Federal Reserve Chairman Jerome Powell, acknowledging his wisdom and highlighting the limitations of monetary policy in addressing fiscal challenges.
"Jerome Powell is not only a great human being but a very wise man. But he doesn't control fiscal policy. Every now and then, he sends out a disguised plea, saying please pay attention to this," said Buffet.
During the meeting, he also raised apprehensions about the potential consequences of unchecked inflation on the global economic landscape. He cautioned against allowing inflation to spiral out of control, warning that it could pose a threat to the entire world's economic stability.
The US Federal Reserve, in its latest monetary policy meeting, voted to leave the key interest rate unchanged at 5.25-5.50 per cent, keeping the policy rate unchanged for the sixth straight time on the trot.
US Fed said it was prepared to maintain the current interest rate for "as long as appropriate" so as to align the inflation rate with its 2 per cent target.
Regarding investment strategies, Buffett reiterated Berkshire Hathaway's preference for US-based companies with a global presence. He emphasized the unparalleled quality of American businesses and the company's commitment to investing primarily in the US market.
However, Buffett noted an exception with Berkshire's recent investment in Japan, citing compelling opportunities in the Japanese market.
He also shared positive comments for India and said, "There are unexplored or unattended opportunities and areas in India." (ANI)
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