Famous investor says Federal Reserve should worry about inflation
OMAHA, Nebraska
- June 25, 2008 -Billionaire investor Warren Buffett has already said he thinks
the U.S. economy is in a recession, and now he says the economy is getting
worse.
Buffett told CNBC in a live interview that all the data he sees from Berkshire Hathaway Inc. subsidiaries shows the economy weakening.
"Everything connected with construction and with consumer, I see weakness, and if anything, it's accentuating a little bit."
Buffett also said he thinks inflation is picking up, especially in steel and oil, so it should be a concern for the Federal Reserve.
But Buffett said he would be surprised if the Federal Reserve were to announce a rate cut Wednesday afternoon.
"I think the Fed has to be careful not to do anything that signals that they regard inflation as a secondary goal and something they'll worry about later," he said.
Buffett also said he believes supply and demand, not market speculation, is what's driving oil prices to new heights.