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Wednesday, June 24, 2009

Buffett Says Inflation a Concern, But Supports Obama Fiscal Policy

By Hope Holland

FOXBusiness

Berkshire Hathaway Chairman Warren Buffett said Wednesday inflation is a concern but that he supports U.S. fiscal policy under President Barack Obama.

Buffett weighed in on the economy and other subjects in an interview with FOX Business Network’s Liz Claman at the Glide Foundation charity auction in New York.

“Much of the world is in the same boat we are, and right now it’s a boat that is in rough seas,” Buffett said about the U.S. economy.

The Obama administration’s fiscal policy makers have raised the likelihood of significant inflation down the road, but the steps they’ve taken were appropriate under the circumstances, he said.

“On the U.S. government issuing too much debt -- it’s doing what it has to do,” Buffett said. “It is appropriate to do it, and it has consequences.”

As unemployment increases, Buffett said he believes the economy has yet to hit a bottom. But the U.S. will bounce back, he said. “Since 1776 it was bad to bet against the U.S,” he said.

As for the Glide Foundation, a charity reaching out to the poor and homeless in the San Francisco Bay area, it will announce Friday the highest bidder seeking to win a lunch with Buffett.

All proceeds from the winning bid will benefit the foundation. Last year’s winner Zhao Danyang bid $2.1 million.

The troubled economy could bring in a lower bid this year this year, but Buffett said the final 15 minutes usually make or break an auction.

“We really care for the worst,” said Reverend Cecil Williams of the Glide Foundation to FBN. “We are very concerned about humanity.”

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