May 3, 2021 - Economy

Warren Buffett sees inflation, even if Jerome Powell doesn't

Data: St. Louis Fed; Chart: Dion Rabouin/Axios Visuals
Data: St. Louis Fed; Chart: Dion Rabouin/Axios Visuals

Warren Buffett became the latest big name to weigh in on inflation, telling viewers of the Berkshire Hathaway annual shareholder meeting this weekend that he and his team are "seeing substantial inflation."

Why it matters: Concern about inflation is growing louder and becoming more pronounced among investors and the general public, even as the Fed and many mainstream economists insist price hikes will be temporary and are not worrisome.

What he's saying: "People have money in their pocket, and they pay higher prices... it's almost a buying frenzy," Buffett said.

  • "We are raising prices. People are raising prices to us, and it's being accepted."

Of note: Buffett's Berkshire Hathaway bought back $6.6 billion in shares of its own stock after a record $27.4 billion in repurchases last year, adding to the boom in stock buybacks I wrote about late last month.

About the chart: The Fed discontinued its weekly M2 money supply reporting for some reason, however, the monthly chart, updated Tuesday, showed U.S. money stock reaching just below $20 trillion in March.

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