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Warren Buffett said on CNBC Monday that the pace of the Federal Reserve's stimulus is not something that can go on and a lot of people will want to get out of assets if they think the Fed is going to tighten.
"It's very easy to buy" because basically you just credit bank reserves. "Now when you start selling, you start sopping up reserves" and that's a much different action than buying, Mr. Buffett said.
The whole world is waiting for the signal that the Fed is reversing course, he said. "All over the world everybody that manages money is waiting to catch the signal that the Fed will reverse course. And I think they are on a hair trigger."
"We've never quite had the degree of disgorgement that might be called for down the line," he said, "and who knows how it will play out."
Warren Buffett said on CNBC Monday that the pace of the Federal Reserve's stimulus is not something that can go on and a lot of people will want to get out of assets if they think the Fed is going to tighten.
"It's very easy to buy" because basically you just credit bank reserves. "Now when you start selling, you start sopping up reserves" and that's a much different action than buying, Mr. Buffett said.
The whole world is waiting for the signal that the Fed is reversing course, he said. "All over the world everybody that manages money is waiting to catch the signal that the Fed will reverse course. And I think they are on a hair trigger."
"We've never quite had the degree of disgorgement that might be called for down the line," he said, "and who knows how it will play out."
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