Warren Buffett attacks the FED’s inflation goal: “It should be 0%”

  • The nuclear threat is among Buffett’s biggest concerns in the current context.

  • Although the main stocks have fallen in price, Buffett does not detect attractive prices.

In his first public appearance after stepping down as CEO of Berkshire Hathaway, Warren Buffett criticizes the foundations of US monetary policy. In an exclusive interview granted yesterday, March 31, 2026, to the CNBC network, the “Oracle of Omaha”—as he has been nicknamed—launched criticism against the 2% inflation target maintained by the Federal Reserve (FED), calling it a harmful measure for long-term savers.

Sitting next to Becky Quick, Buffett held nothing back when evaluating the management of Jerome Powell, whom, despite considering a “hero” for his performance in the COVID-19 crisis (when the FED raised interest rates and increased the money supply), he questioned his current fundamentals. The investor was blunt to the propose a radical change in the FED’s compass: “I wish they had a 0% inflation target,” he stated.

For Buffett, Complacency with moderate inflation is actually a silent erosion of wealth. He explained that “tolerating 2% is drastically capitalized and punishes those who save.”

From their perspective, what seems like a harmless figure in macroeconomic reports translates, over the decades, into a massive loss of purchasing power for the common citizen that trusts the traditional financial system.

Buffett’s concern is not limited to consumer prices, but to the very essence of the fiat system. The investor admitted that Their biggest fear today is not just the job market, but the health of the US currency. «I would be concerned about the stability of the dollar as a reserve currency. If something happens to the dollar, I would not want to have the responsibility of the FED,” he warned.

The private credit crisis is “a double-edged sword,” says Buffett

Regarding current crises and potential crises, Buffett issued some words of warning. The former executive director of Berkshire explained that the distinction between traditional banking and so-called “private credit” (a sector of the economy in which a crisis is brewing, as CriptoNoticias has reported) is increasingly blurred.

«Everything is part of the banking system because the institutions affect each other; “The problems of one can spread to another,” he explained.

According to Buffett, the global interconnectedness of credit is a double-edged sword that becomes lethal when fear takes over the markets.

«In times of panic, global interconnectedness can be dangerous. When liquidity disappears, people sell at any price,” he said.

Buffett doesn’t spot buying opportunities in today’s stock market

Buffett commented that Berkshire Hathaway currently owns more than $350 billion in cash and Treasury bills, having purchased $17 billion of the latter in the past week alone. But They have not yet deployed that capital massively into the stock market.

Even though indices, for example, the S&P500, are in correction territory, for the 95-year-old investor, current valuations remain unattractive: «A drop of 5 or 6% is not enough for us. “We are business owners, not simple speculators.”

Chart of the S&P500 index since 2019.Chart of the S&P500 index since 2019.
The S&P500 is moving away from its all-time highs, although it has not yet confirmed a loss of the bullish trend. Fountain: TradingView.

It is worth clarifying that, despite saying this, Buffett did not “prophesize” that there will be even greater falls (which is important to clarify due to some publications false or biased statements that were made on social networks in this regard).

Regarding his current positions, the investor defended his holding in Apple, which he described as an “extraordinary business.” Although he admitted to having sold the technology company’s shares “too soon,” he recalled that Apple remains his largest investment due to extreme consumer loyalty. “I don’t think Washington would destroy something that its own voters love and use,” he said.

«The survival expectancy of the planet has been reduced»

The tone of the interview turned somber as it discussed geopolitical risks, especially the conflict with Iran and nuclear proliferation. Buffett considers this to be the main danger for humanity and the economy:

The most dangerous thing is someone in control of the switch feeling cornered or facing great shame. The survival expectancy of the planet has been drastically reduced.

Warren Buffet, investor.

To conclude, on a more personal level, Buffett explained that his departure as CEO was a necessary decision dictated by the passage of time. “I’m 95 years old… there comes a point where your body tells you that you should hand over the baton to someone else,” he commented, praising the management of his successor, Greg Abel, who he said “covers more ground in a day than I covered in a week in my prime.”

For readers interested in preserving value—a characteristic that bitcoiners tend to have—the Buffett’s warnings about the FED and the fragility of the dollar resonate with renewed force, coming from someone who has seen more market cycles than almost any other living player in global finance.

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