Market veteran Howard Marks says Fed is ‘not going back' to ultra-low rates

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That means credit can provide a “very solid foundation” to an investment portfolio, the Oaktree Capital Management co-founder told CNBC.

When the Federal Reserve starts cutting interest rates, it will not restore them to their post-financial crisis lows, according to veteran investor Howard Marks.

The current environment and future picture mean investors should be adding credit into their portfolios, he added. "The U.S. economy is doing quite well, and so it's not clear that it requires stimulus," Marks told CNBC's Frank Holland on Tuesday."One of these days we'll declare victory against inflation, and the Fed will take rates down to something moderate and sustainable. I think that's in the threes."

"I think that interest rates should most of the time be set by the free market. That is to say the negotiations between borrowers and lenders, as opposed to having a central bank tell people what the rate should be. So I hope we're going back to that climate."published in 2023 that low rates over the 13 years following 2008, skewed the behavior of participants in the economy and markets, calling the period"easy times, fueled by easy money.

 

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