Financial Post | Business

Billionaire investor Warren Buffett compared the U.S. Federal Reserve to a hedge fund because of the central bank’s ability to profit from bond purchases while accumulating a balance sheet of more than US$3 trillion.

[np_storybar title=”Why the Fed is the only central bank that matters” link=”http://business.financialpost.com/2013/09/19/why-the-fed-is-the-only-central-bank-that-seems-to-matter/”]Analysis: The BoC and U.S. Fed made similar statements on the same day, but markets went ballistic only after Bernanke announced there would be no tapering. Read more
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“The Fed is the greatest hedge fund in history,” Buffett told students Thursday at Georgetown University in Washington. It’s generating “US$80 billion or US$90 billion a year probably” in revenue for the U.S. government, he said. “And that wasn’t the case a few years back.”

The central bank has been buying US$85 billion of bonds a month to help the U.S. recover as it emerges from the deepest slump since the Great Depression. Chairman Ben S…

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