Warren Buffett: I was wrong on interest rates


Warren Buffett, the world’s most admired billionaire, faced a lot of criticism on his home turf at this year’s annual meeting of Berkshire Hathaway [fortune-stock symbol=”BRK.A”]. Some of it was self-inflicted.

Buffett said that he wouldn’t have predicted that interest rates could have stayed this low for this long without a problem. “So far, I have been wrong on interest rates,” said Buffett. “It is so hard for me to believe that you can drop money from a helicopter and not have inflation, but we haven’t.”

Two years ago, the Berkshire CEO said he was worried about the Federal Reserve’s efforts to stimulate the economy. In particular, Buffett warned that the end of the Fed’s so-called quantitative easing program, in which the U.S. central bank bought billions in bonds to drive down interest rates, would end badly.
[fortune-brightcove videoid=4212382473001]

It hasn’t. The Fed stopped adding to its bond portfolio in…

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