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Buffett cautions on ‘extreme consequences’ from the Fed’s recent moves – CNBC

 

KEY POINTS

  • Warren Buffett said he worries about the “extreme consequences” of Federal Reserve action to prop up corporate debt.
  • The Berkshire Hathaway chief mostly praised the central bank but said it’s hard to tell what the outcome of its moves will be.
  • Buffett played a major role during the Great Recession but has largely avoided buying during the coronavirus crisis.

Warren Buffett praised the Federal Reserve for its actions to blunt the effects of the coronavirus but said he worries about the repercussions.

Speaking at Berkshire Hathaway’s annual investor meeting Saturday, Buffett said companies struggling to make it through the current period of social distancing owe thanks to the Fed for providing low-interest financing that is helping keep them afloat.

Without mentioning specific worries, Buffett said he is concerned about the longer-term ramifications. Read More…