Buffett: Federal Reserve is greatest hedge fund in history

Billionaire investor Warren Buffett has compared the Federal Reserve to a giant - and successful - hedge fund, after the central bank opted not to taper its asset purchase programme on Wednesday evening.

In a speech at Georgetown University in Washington, Buffett said the Fed's ability to make money from asset purchases, which have tripled the size of its balance sheet in the space of five years, makes it equivalent to "the greatest hedge fund in history". "It is generating $80 billion or $90 billion a year probably [in revenue for the U.S. government]," he said. "And that was not the case a few years back."  He also backed chairman Ben Bernanke to continue in his role after his term expires in January next year. "Since the panic of five years ago, he has done a terrific job," Buff...