The oracle of Omaha, Warren Buffett thinks that the US Stimulus Package may not be enough. He also believes that the Fed has done well in these circumstances. He thinks the Fed should "quit now" on its series of interest rate reductions. 

Excerpts from CNBC’s exclusive interview with Warren Buffett:

Q: Do you think Bernanke went too far with that last rate cut?

Buffett: I don't think there's much need for more rate cuts. They have played that out, and if you get rates down too low you have got a real problem. So, I think I would quit now.

Q: You would quit now?

Buffett: Sure.

Q: Do you think the US stimulus package is enough?

Buffett: I think there are downsides to economic stimulus. I don't think its necessarily going to do an enormous amount of good. In fact, I think most people, when they get it, really should pay down their credit card bills, if they owe money on that. But, instead of dropping USD 600 from the sky you could drop USD 6,000 from the sky. But it has consequences later on in the inflationary area. So, you have to be a little bit careful about dropping money on people and the economy.

Q: But you don't think it's a good idea to send out the checks that just started last week.

Buffett: Well, it's got pluses and minuses. You can obviously stimulate an economy by mailing money to people. And if you want to mail them USD 6,000 instead of USD 600, you will get more stimulus. But it can't be a free lunch in terms of monetary policy and the eventual economic consequences. I think you want to be careful using that tool.

Q: Do you prefer that people really go and spend down their credit card debt? Because we had been thinking they would go out and do some spending and that would help the economy. If they just pay down their credit card debt, they are not necessarily doing what we wanted.

Buffett: Well that may be. But I think that anybody paying 15-18% on credit card debt is out of their mind if they don't use the stimulus to pay down the credit card debt because they are not going to be earning 15 or 18% with money. And to the extent that they are in a hole now because they over-borrowed in the past; they should pay down debt. If I owed money at 15 to 18% and I got USD 600 or USD 6,000, I would use it to pay down the debt.