The Fed is the Biggest Hedge Fund in History

Gedung Bank Sentral Amerika (The Fed). | Dok Kontan.co.id

One of the world's richest man, Warren Buffet, said the U.S. central bank, the Federal Reserve is a hedge fund (an investment company), the largest in history.

This is because the Federal Reserve is able to make a profit of up to 3 trillion dollars of U.S. government bond purchase program (quantitative easing). "The Fed is the biggest hedge funds in history," he said in a public lecture at Georgetown University in Washington last week.

The U.S. central bank was continuing to this day the U.S. government bond purchase program by 85 billion per month to help the economic recovery in the country, after the U.S. economy tumbled at its worst levels since the Great Depression.

Last week, Governor of the Federal Reserve, Ben S. Bernanke and top officials of the central bank is not expected to make a decision earlier, trimming stimulus delay, and defend the U.S. government bond purchases by 85 billion U.S. dollars.

Last year, the Fed has paid 88.4 billion dollars to the U.S. Treasury. The amount paid was more bloated because the Fed continued to buy U.S. government bonds.

"The Fed is not under pressure to do it all. However, however, the debt must be reduced. Actually, all that can be overcome if there are wise people in the Fed, and I think Ben Bernanke is a wise man. However, all was not completely resolved in this level. Let's see, there will be something interesting to observe, "said Buffett.