Fed Hike Fails to Boost Berkshire Cash Pile Yet

Berkshire Hathaway's massive cash pile of $359.2 billion has not yet benefited from the Federal Reserve's recent rate hike.

The Fed increased its benchmark rate to 3.75%-4.00% on September 16, but Berkshire's interest, dividend, and other investment income for the first half of 2026 actually slipped year-over-year.

This is despite the cash pile growing steadily since 2023, when it held roughly $146 billion.

The lag in earning more from higher rates is due to older Treasury bills maturing and being reinvested at the new rate over months rather than instantly.

Berkshire's net earnings rose to $35.8 billion for the half, mainly from unrealized gains on stock holdings, not cash income.

The Fed has signaled it expects one more increase before year-end, with an 87% chance of that happening, which could further lift Berkshire's interest income as maturing bills roll over at higher yields.