Buffett Calls Bernanke Gutsy; Says Economy is Slowly Improving

Warren Buffett, billionaire investor, looks at the economy as slowly improving. He has also hailed Ben Bernanke, Federal Reserve Chairman, as being “gutsy” for the central bank’s actions in which they have attempted to boost growth.

On Monday morning, he told CNBC that he really isn’t concerned with the recent record highs in the financial markets. He also mentioned that he recalls when the Dow Jones industrial average first crossed 100 points.

He then said that investors should not shy away from the markets.

“Probably in my lifetime, and certainly in your lifetime, you will see markets that are far higher than this,” said Buffett to Becky Quick of CNBC.

Buffett also said that even though stock prices are higher lately – and the Dow Jones even crossed a record breaking 15,000 during Friday’s training – he also said they’re not “ridiculously higher.”

Buffett mentioned that the housing recovery is a strong reason why economic growth is stimulated, and economic demand is also slowly returning.

“The economy is moving forward, but at a slow pace,” said Buffett.

Buffett had really high praise for the Federal Reserve chairman, leader of the controversial Fed efforts being used to stimulate the economy through near zero interest rates while dramatically expanding the balance sheet of the central bank.

For the first time last week, Fed policymakers said they are ready to increase the $85 billion a month bond buying program implemented by the central bank if the economy is in need of this.

Buffett mentions that the Fed chairman is a “gutsy guy” for the actions he has taken since the 2008 financial crisis has begun, and that the Fed chief has done “very, very well” with his efforts to keep the economy moving in a forward direction.

Buffett mentioned that he personally may have started reducing the stimulus earlier, but he also mentions that he’s not sure how he would’ve done it so that it would not hurt economic recovery and growth.

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