Economics
Oaktree’s Howard Marks Rebukes Fed for Inflating Prices, Enriching Rich
- A strong economy doesn’t need rate cuts, co-founder says
- Oaktree has deployed 30% of distressed fund amid slim pickings
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Oaktree Capital Group Co-Founder Howard Marks says the Federal Reserve was wrong to cut rates last month. Why? Because more monetary stimulus will just boost asset prices further, making the rich richer without benefiting savers.
A U.S. economy in its 10th year of expansion, with record-low unemployment and healthy businesses, doesn’t need the Fed’s help, Marks said in an interview on Bloomberg TV. The central bank’s quarter-point rate cut last week -- and any future reductions -- will make it harder for people with fewer savings -- not to mention lenders -- to earn decent returns, he said.