Warren Buffett says that despite recent signs of weakness, the U.S. economy isn't likely to slip back into a recession.

He also says both political parties deserved blame for the federal government's failure to reduce the deficit.

Speaking at the 25th anniversary dinner of the Economic Club of Washington late Tuesday, the billionaire investor said he sees the
odds of a renewed recession as "very low."

But he warned that could change if the effects of Europe's financial crisis were to "spill over in a big way."

When asked how he would reduce the U.S. government's budget deficit, which is on track to top $1 trillion for the fourth year in a row, Buffett recommended raising taxes and cutting spending.