Billionaire investor Warren Buffett has called the U.S. Federal Reserve “the greatest hedge fund in history.”
Bloomberg reported that Buffett told students earlier this week at Georgetown University that the Federal Reserve is generating between $80 million to $90 million a year in revenue for the U.S. government—higher than the annual return for the average hedge fund.
The article also said that Buffett praised Federal Reserve chairman Ben S. Bernanke for signaling in 2008 that he would do whatever was needed to stabilize markets, however the latter recently said that he wants to see further gains in U.S. employment before scaling back on bond purchases.
The chairman and CEO of Berkshire Hathaway, Buffett announced in 2006 that he would give his entire fortune away to charity. He is the world’s fourth-richest person.