Oaktree Capital co-founder: Does not believe the Fed needs to cut rates significantly, questions the logic of AI debt financing

Jinse Finance reported that Howard Marks, co-founder of Oaktree Capital Management, warned that the Federal Reserve's "intervention" in funding costs will drive people toward higher-risk investments as the return environment slows down. He stated that he does not believe interest rates need to be significantly lower than current levels. Marks said: "I think the Federal Reserve should remain passive most of the time, only stepping in to help when the economy is severely overheating and heading toward hyperinflation, or when it is in a serious downturn 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" about the impact of artificial intelligence on employment, and also questioned the practice of mega-cap companies issuing large amounts of debt at extremely low yields to finance AI deployment when demand for AI is still uncertain.