Oak Tree Capital Co-Founder: Do not believe the Federal Reserve needs to cut interest rates significantly

Odaily Planet Daily News: Howard Marks, co-founder of Oak Tree Capital Management, warned that the Federal Reserve’s “intervention” in funding costs will, as the return environment slows down, push people toward higher-risk investments. He stated that he does not believe interest rates need to be significantly below current levels. Marks said, “I think the Federal Reserve should mostly remain passive most of the time, only stepping in to help when the economy is severely overheated and heading toward hyperinflation, or when it is severely sluggish and unable to create jobs. I don’t think that’s the case right now.” Earlier this week, Marks wrote in a blog post that he is “fearful” of AI’s impact on employment and questioned the practice of mega-corporations issuing大量债券 at extremely low yields to finance AI deployment, given the still uncertain demand for AI. (Jin10)