Warren Buffett, Jack Welch say Fed should put off rate-hike plans

Two of the most well-known titans of American business on Wednesday said it was doubtful the Federal Reserve will be able to raise interest rates in the current environment, especially with the stronger dollar.

Jack Welch said it would be “crazy” for the Federal Reserve to hike interest rates in the current economic environment.

“I think it would be ludicrous to raise them right now with the situation we have. We’ve got oil problems…and we’ve got a strong dollar, which is killing exports,” said the former boss of General Electric Corp. GE, -0.33% in an appearance on CNBC on Wednesday

Higher interest rates would only cause the dollar to strengthen further and exports “would fall off the table even more,” said Welch, who ran GE from 1981 to 2001.

“It does nothing at all for the U.S. economy to whack it now with everybody around the world easing, easing, easing,” he said.

In an interview with the Fox Business Network, Buffett said he didn’t think a rate increase would be “feasible.”

“I think it is going to be very tough to raise rates when you’ve got what is going on around the world,” Buffett said.

A rate hike would “exacerbate” the problem with the stronger dollar and flows into the U.S., he added.

“It would have a lot of international repercussions,” he added

Fed officials have played down the risks to the economy from the sharp drop in oil prices and the stronger dollar.

Welch’s and Buffett’s comments suggest that managers of America’s largest businesses are more worried.

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