OMAHA, Neb. (AP) — Billionaire Warren Buffett says the current low interest rates continue to make long-term borrowing like 30-year mortgages attractive, but he expects significant inflation eventually.
Buffett talked to the Fox Business Network on Monday after a weekend full of events for Berkshire Hathaway Inc. shareholders.
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Buffett says the low interest rates have certainly helped Berkshire’s business and the economy. He says the low rates also make this an ideal time to take out a 30-year mortgage.
But he says anyone who relies on fixed-income investments has been hurt. Buffett says it’s going to be interesting to see what happens when the Federal Reserve signals that rates are going to start increasing.
Buffett says inflation is likely when the Fed stops its $85 billion a month bond-buying program.
