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.
“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.”
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 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.
Buffett expressed concern about the central bank’s long-standing inflation target. “Well, I wish they had a zero inflation target,” he said.
“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.
This is a developing story. More to follow.