'Fast Money' Recap: What Would Warren Do?

The stock market took a hit Tuesday after traders were disappointed with the 25 basis point cut from the Federal Reserve on both the discount rate and the funds rate. The Dow fell 294 points and the Nasdaq dropped 38 points. The team at CNBC's "Fast Money" surveyed the damage and took notes from Warren Buffett.

Pete Najarian suggested the market took a pounding because the Fed disappointed the street by not lowering the discount rate by 50 basis points. Jeff Macke declares there is no reason to buy stocks with the Fed being so passive. He also mentioned that the S&P 500 took out support levels and he sold his position in Coach(COH Quote). On the other hand, Karen Finerman doesn't pay that much attention to what the Fed does. Guy Adami recommended making a laundry list of stocks investors might want to buy on days like Tuesday.

Warren Buffett's Take on the US Economy

Warren Buffett thinks it's possible that the US economy could be heading for a recession. He mentioned that if unemployment picks up, it could cause some strain on the economy and possibly push the US into recession. Buffett explained that inflation has to be a real worry for the Fed when you see the dollar falling the way it is. He went on to express that he is worried that people around the world are losing confidence in the dollar and even he isn't sure he could do a better job then the Fed is on interest rates. Lastly, Buffett mentioned he told both Hillary Clinton and Barack Obama he would support them for a presidential run before either one declared they were running.