Buffett optimistic for ‘resilient’ US economy

Mr Buffett also said he remains on the prowl for a big acquisition, having lost a sizable one in the last day or two, but that there is not a “high probability” of one soon.

Speaking on CNBC television, Buffett maintained his “enormous respect” for the efforts of Federal Reserve Chairman Ben Bernanke to move the economy forward.

He said improvement in the business environment is likely in future months to be reflected by a decline in the US unemployment rate, probably to the low seven per cent range by the November 2012 elections from nine per cent now.

He said such gains suggest no need for more stimulus.

“In the end, I don’t think we need more of that,” he said.

Activity is probably “inching” ahead in most businesses at Berkshire and in much of the economy, while others are “moving forward” and others are “stuck”, he said.

Housing remains a problem, and Mr Buffett said it might take a year to have “sopped up the excess supply” of homes.

Berkshire sells such things as car insurance, ice cream, underwear, bricks and industrial parts.

“The economy is coming back,” Mr Buffett said.

“There is a resiliency to the American system,” he added. “It does work. It sputters from time to time, it will sputter from time to time, but you don’t want to get worried.”