Oliver GillMay 2, 2021, 10:34 AM·4 min readWarren Buffet – Paul Morigi /Getty Images
Billionaire investor Warren Buffett is predicting a “red hot” US recovery from the Covid pandemic, but has warned the economy is being hit by rising inflation.
Mr Buffett, known as the “Sage of Omaha” for his savvy stock picking, said the coronavirus crisis had sparked a highly unusual recession because so many businesses had continued to thrive.
But although he expects a rapid recovery, Mr Buffett also fears that inflation will rapidly pick up in a way that America has not experienced for over a decade.
He said: “This economy right now – 85pc of it is running in a super high gear. We’re seeing very substantial inflation.”
Rapidly rising prices are viewed with concern by investors as they can eat into returns, drive up interest rates and potentially cause long-term damage to the economy and living standards by eroding the value of workers’ wages.
Inflation has not been a challenge in...read more...