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Berkshire Hathaway Inc.

Buffett praises Fed but warns of unintended consequences

Investor Warren Buffett said the Federal Reserve and other policymakers are generally doing a good job, but it's difficult to predict all the effects of interest rates remaining low for this long.

Buffett said on CNBC Monday that no one can predict the effects of prolonged low rates because it has never happened before, but the U.S. economy has substantially recovered from the depths of the recession in 2008.

"Very few people in 2009 would have dreamt that we could have this duration of low rates," Buffett said.

But policy makers do have to be careful not to raise U.S. interest rates too far ahead of Europe and Japan because of unintended consequences of the...