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Warren Buffett: US economy ‘not bad’ but ‘not booming’

“We’re still on that path we’ve been on for six years,” the chairman and CEO of Berkshire Hathaway said on CNBC’s “Squawk Alley.” “That’s not a bad rate, but it’s not a booming rate, either.”

Berkshire Hathaway’s Warren Buffett shared his outlook on the U.S. economy on Tuesday, saying he believes it is growing at a rate of about 2 percent.

“We’re still on that path we’ve been on for six years,” the chairman and CEO of Berkshire Hathaway said on CNBC’s “Squawk Alley.” “That’s not a bad rate, but it’s not a booming rate, either.”

Buffett made his remarks as investors around the world ponder whether or not the Federal Reserve will move forward on raising interest rates, given the recent volatility in financial markets.

“If our rates got substantially higher than Europe’s, I don’t think that would be good for exports in this country,” Buffett added. “In economics, you can never do one thing. There is always an ‘then what’ and I think the ‘then what’ of raising rate while Europe’s trying to keep them low could have some consequences down the line.”

Buffett also discussed his stake in IBM, saying he bought more of the company’s shares in the first and third quarters. His comments caused the stock to briefly spike and were up more than 1 percent on Tuesday trading.

The previous time the Oracle of Omaha spoke with CNBC in early August, he discussed the conglomerate’s USD 37.2 billion acquisition of Precision Castparts, an aircraft equipment maker, saying “This a very high multiple for us to pay.”

Berkshire offered USD 235 per share for the company, a premium of 21.2 percent to Precision’s Aug. 10 close of USD 193.88.

Buffett also said Berkshire would probably spend USD 32 billion in the next four-to-five months. “I still got money to buy. I’ll never go below USD 20 billion in cash.”

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