The Oracle of Omaha Warren Buffett has given in a recent interview said that no textbook written on the economics of the US could have predicted the strange condition of today’s US economy. Currently, every economist is giving their personal opinion on how the US is growing and whether it will hit another recession or not. Warren Buffett while giving an interview mentioned that the US economy is growing at a reasonable rate plus the unemployment rate is also low, yet the government is not taking proper actions to increase interest rates.
Buffet mentions there is no textbook written about this weird situation of a country’s economy and no one could have predicted this would happen. A few days ago labour department issued a report in which it’s been stated that the unemployment rate fell to 3.6% only which is lowest since 1969. Now with such an excellent achievement, the US economy is growing at a faster rate than anyone’s expectations. However, some economists think Trump government shall increase interest rates to control inflation.
Central bank is trying to control inflation by increasing interest rates even though Trump is clearly against this move. Buffet thinks the current situation of country can’t be in the same condition and it will change because of political decisions. In a next few days, Buffet is going to address the annual meeting Hathaway’s shareholders in which he is possibly going to talk more about current economy’s condition. Recently it has been found that Berkshire Hathaway has been purchasing shares of Amazon which a surprising thing.
Since Buffet is not a fan of tech companies and he has always invested in banking or financial sector. Other than this the only tech company which Buffet has invested in Apple Inc. President trump’s action of not supporting fed’s decision to raise interest rates now has become a general issue also even Buffet is indirectly not agreeing with his policies.