Warren Buffett: Zero Inflation Target for Fed

Warren Buffett, the billionaire investor and former CEO of Berkshire Hathaway, expressed his wish for the US Federal Reserve's inflation target to be set at 0% on Tuesday.

When asked about what he would prioritize if he were in charge of the Fed, Buffett said he would be more concerned about inflation than the employment goal, and also focus on banking system stability. He stressed that he hopes the central bank takes a zero-tolerance approach to inflation because allowing a 2% inflation rate would quickly grow and amplify its impact.

Buffett stated, “If I were running the Fed, I would fully concentrate on inflation and banking system stability.”

He also commented that the Federal Reserve Chair Jerome Powell's decision to cut interest rates was correct, calling it a “disaster” not to do so; however, he declined to comment on whether Powell had waited too long to cut rates as President Trump suggested.