Oaktree’s Marks Says Fed Cuts Won’t Take US Rates Below 3%
- Howard Marks lays out US economy views at Melbourne conference
- Inflation “emergency” is over and Fed cuts coming, Marks says
The Fed is widely expected to kick off its easing cycle this month.
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US interest rates will settle in a range of between 3% and 4% after reductions by the Federal Reserve, according to Oaktree Capital Management LP’s Howard Marks.
“The Fed will back off from the emergency rate of five and a quarter, five and a half and get down into the threes,” Marks, the co-chairman and co-founder of Oaktree said at a conference in Melbourne Thursday. “But my point to you, my belief is that we’re going to stay there in the threes and we’re not going back to zero or a half or one.”