04/01/2026
Leave emotions out of the equation.
Just thinkin’ – Maybe we should hire Mr. Buffett to replace Mr. Powell. He always seems to put situations in their proper prospective.
ttps://www.msn.com/en-us/money/markets/warren-buffett-issues-us-currency-warning/ar-AA1ZVhPY?uxmode=ruby&ocid=edgdhpruby&pc=DCTS&cvid=69cd3a9155b64cdc8c65caa21d984bea&ei=13
Warren Buffett issues US currency warning,
Story by Aliss Higham
Apr 01 • 2 min read • Updated 37m ago
Key takeaways
- Global Reserve Currency: Buffett highlighted the U.S. dollar’s role as the world’s reserve currency, cautioning that any instability could have serious global consequences.
- Dollar Fluctuations: The dollar recently fell to a four-year low, dropping over 10% between January 2025 and 2026 before partially recovering.
- Fed Concerns: He criticized the Federal Reserve’s 2% inflation target, suggesting it may erode savings over time and expressed unease about managing the Fed under such conditions.
Warren Buffett has warned of the impact that the U.S. dollar can have globally, as he discussed the current problems facing the Federal Reserve.
Speaking on CNBC’s Squawk Box, the Berkshire Hathaway chairman said: “Well, if I were at the Fed, the thing I’d worry about always is, you know, you’re the reserve currency of the world.”
He added: “I mean, so you’ve got very smart people, very sophisticated people, the American dollar looks like nothing could happen to it. I don’t feel anything could happen to it. But if it does happen to it… I wouldn’t want the responsibility of running the Fed.”
Warren Buffett at the Berkshire Hathaway annual shareholders’ meeting in Omaha, Nebraska, in 2019.
What To Know
The U.S. dollar is the world’s reserve currency, meaning governments and institutions hold it as their main foreign currency and use it for global trade and finance.
In January, the U.S. dollar fell to its lowest level in four years, and declined more than 10 percent between January 2025 and 2026, before regaining some strength in March.
The Federal Reserve is the central bank of the United States and is responsible for managing the economy by setting interest rates and controlling the money supply to keep inflation stable and support employment.
The Fed announced in March it would hold its benchmark interest rate steady at 3.5–3.75 percent, despite persistent calls from President Donald Trump to bring the rate down. The central bank is independent of the executive branch, though it is legally accountable to Congress.
Trump wrote on Truth Social in March: “Where is the Federal Reserve Chairman, Jerome ‘Too Late’ Powell, today? He should be dropping interest rates, IMMEDIATELY, not waiting for the next meeting!”
The Fed sets a two percent annual inflation target as a benchmark for price stability. This means the Fed aims for consumer prices to rise about two percent per year on average, which is considered low enough to maintain purchasing power but high enough to avoid deflation or falling prices.
Buffett expressed concern about the central bank’s long-standing inflation target. “Well, I wish they had a zero inflation target,” he said. Inflation currently sits at 2.4 percent as of February, and has been declining from 3 percent since September 2025.
“But, I mean, once you start saying you’re going to tolerate two percent, that compounds pretty dramatically over time. And you’re saying to people, if you’re getting less than two percent on your money, you’re going backwards. And, actually, if you pay tax, you may pay tax on the two percent. You know, I mean, I don’t like that particular goal,” he said.
Central banks control monetary policy, interest rates and the financial system. They supervise banks, secure payment transactions, and stabilize markets in times of crisis.
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