Howard Marks Warns of Little Merit in Further Fed Rate Cuts

The Federal Reserve’s “manipulations” around the cost of money will drive people into riskier investments as the return environment moderates, Oaktree Capital Management LP co-founder Howard Marks warned, adding he doesn’t see the merit in interest rates being much lower than they are now.

“I believe that the Fed should be passive most of the time and only come to the rescue if the economy is seriously overheated and tending toward hyperinflation or seriously underactive and not creating jobs,” Marks said in an interview with Bloomberg TV. “I don’t think that’s the case right now.”