Warren Buffett Sees 'No Option' Other Than US Dollar as Reserve Currency, but Warns Fed Can't 'Just Print Money Indefinitely'

Warren Buffett, CEO of Berkshire Hathaway and one of the most renowned investors in the market, stated that he saw no viable option to become the world’s reserve currency besides the U.S. dollar. However, he warned about the dangers that printing too much money could bring to the strength of the currency in the future.

Warren Buffett’s Only Valid Option for Reserve Currency Is the U.S. Dollar

Warren Buffett, CEO of Berkshire Hathaway, also known as the ‘Oracle of Omaha’ due to his city of origin, gave his opinion about the status of the dollar as a reserve currency and how this could change in the future.

During the 2023 Berkshire Hathaway annual meeting, the legendary investor was asked about his thoughts about the process of de-dollarization that world markets are experiencing, with countries like India and Brazil seeking to reduce dollar dependence, and its relation with the U.S. Federal Reserve money printing processes and rising interest rates to control inflation.

Buffet explained that, in his opinion, the dollar was the only candidate to be considered the world’s reserve currency at the moment, but also raised concerns about how much the U.S. Federal Reserve could print without putting this reserve currency status in jeopardy.

The Dangers of Printing Money Indefinitely

Buffett explained that nobody knew the situation better than Jerome Powell, the President of the U.S. Federal Reserve, but added he was not in charge of the fiscal policy of the country.

The Oracle of Omaha warned about the actions of the U.S. regarding printing, stating:

Nobody knows how far you can go with a paper currency before it gets out of control, and particularly if you’re the world’s reserve currency. You don’t want to try and pick out the point where it does become a problem because then it’s all over.

Buffett remarked that when people lose faith in the currency, they behave in an entirely different manner than they do when they put some money in the bank or have a pension plan that will give them something with equal purchasing power. This can create other problems for the economy that Buffett concedes he cannot predict fully.

He concluded his answer reiterating his warning about money printing. He declared:

America is an incredible society, rich; you know, we got everything going for us, but that doesn’t mean we can just print money indefinitely.