Oaktree Capital co-founder: Does not believe the Federal Reserve needs to cut interest rates significantly.

Odaily Planet Daily reports that Howard Marks, co-founder of Oaktree Capital Management, warned that the Federal Reserve's "intervention" in the cost of funding will push people towards riskier investments as the returns environment slows. He stated that he does not believe interest rates need to be significantly lower than current levels. Marks said, "I think the Fed should remain passive most of the time, only intervening when the economy is severely overheated, trending towards runaway inflation, or severely depressed 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 was "fearful" of the impact of artificial intelligence on employment and questioned the practice of hyperscale companies issuing large amounts of debt at extremely low yields to finance AI deployments when the demand for AI remains uncertain. (Jinshi)