Warren Buffett.
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Warren Buffett isn’t stressing about Fitch’s cut to America’s credit rating this week.
Berkshire Hathaway continues to buy $10 billion of US Treasuries every Monday, he told CNBC.
Buffett said the US dollar’s status as the world’s reserve currency remains intact.
Warren Buffett isn’t stressing about Fitch’s shock downgrade this week of the US credit rating from AAA to AA.
“There are some things people shouldn’t worry about,” he told CNBC’s Becky Quick. “This is one.”
The famed investor and Berkshire Hathaway CEO noted that his conglomerate bought $10 billion of US Treasuries on Monday, the same amount it bought on Monday last week. He added that the only question is whether Berkshire will buy $10 billion of 3-month or 6-month Treasuries next Monday.
Buffett said he doesn’t agree with all of the federal government’s actions, but he remains fully confident in Treasuries and the US dollar.
“The dollar is the reserve currency of the world, and everybody knows it,” he said.
Fitch’s ratings cut spooked investors this week, as it signaled reduced confidence in the safety of US government debt. The credit-rating agency made the move because of the country’s rising debt level, weakening governance, and an “expected fiscal deterioration over the next three years.”
Buffett is known for his unwavering optimism when it comes to America’s prospects. He’s also dismissed concerns about de-dollarization and the US government defaulting on its debt in recent months.