Warren Buffett: Hope the Federal Reserve sets its inflation target at 0%

MaticHoleFiller · 2026-04-11T07:44:42+00:00

Warren Buffett stated that he hopes the Federal Reserve sets the inflation target at 0%, prioritizing inflation and the stability of the banking system. He believes tolerating 2% inflation will have negative effects and said that cutting interest rates is the right decision.

MaticHoleFiller

2026-04-11 07:44:42

Abstract generation in progress

Billionaire investor and former Berkshire Hathaway CEO Warren Buffett said Tuesday that he hopes the U.S. Federal Reserve sets its inflation target at 0%.

When asked about “what the Fed would prioritize if he were in charge,” Buffett said he would be more concerned about inflation than the Fed’s employment goal, and he would also focus on the stability of the banking system. He emphasized that he hopes the central bank adopts a zero-tolerance policy for inflation because tolerating 2% inflation would lead to rapid and amplified effects.

Buffett stated, “If I were in charge of the Fed, I would focus entirely on inflation and banking system stability.”

The billionaire also said that the decision by Fed Chair Jerome Powell to cut interest rates was correct and described not cutting rates as a “disaster”; however, he declined to comment on whether Powell’s rate cuts have been “waiting too long,” as former President Trump suggested.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

2 Likes