Billionaire investor Howard Marks says US hasn't had a free market in decades due to Federal Reserve's 'activist' approach, warning 'easy money corrupts'
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Renowned Investor Howard Brands, WHO co-founder of Oaktree Capital, has raised concerns that A back has THE little interest rate environment, which was seen between THE Great Financial Crisis and THE epidemic of THE pandemic, could to favor harmful investment behavior.
What It happened: in A Tuesday note, Brands declared that THE natural rate, which reflects THE balance of supply And request For money without central bank interference, should has guide capital allocation the decisions. He, However, sharp out that THE financial walk has not exploited freely Since THE 90s due has THE Federal Reserves 'activist' approach, which implied pumping liquidity has avoid potential problems, reported Business Insider.
With inflation drop, investors to wait for THE Federal Reserve has slash interest rates Again, which would be impact both THE equity And bind markets. Despite This, Brands warned against waiting close to zero rates, emphasizing THE problems that arose Since THE easy money time Before THE pandemic.
"Maybe We to have A new version of Lord Acton law: easy money corrupts, And Really easy money corrupts absolutely," Brands wrote, quoting THE late investor Charlie Munger Since A interaction THE two shared.
Brands explain that while lower loan costs can spur economic growth, they can Also accelerate growth Also quickly, leading has inflation. This, In turn, would be fast THE fed has implement A more strict policy, which could to discourage economic activity And create financial disparities.
See Also: Digital Manufacturing Revolution? A Look HAS THE Industry And Innovator Shapes SHPW
Weak rates Also to have THE potential has swell active prices And encourage riskier investments, maybe leading has active bubbles. Moreover, people WHO TO DO not invest In actions earn less on their savings, exacerbate wealth inequality.
For what He Topics: This warning Since Brands come has A time When THE Federal Reserves monetary policy has has been A hot subject of discussion. Last year In November, Pierre Schiff critical fed Chair Jerome Powell inflation outlook, emphasizing THE role of excessive government expenses In conduct inflation above THE The Fed 2% target.
Wall Street banks had has recalibrate their 2024 interest rate following forecasts A conciliatory pivot Since THE Fed, indicating potential rate cuts. This was further confirmed by the Fed December meeting minutes, which suggested that interest rates are likely has Or close THE peak of THE ride a bike. THE minutes reflect A unequal progression In inflation control, particularly noting that "heart services prices are always rising has A pupil rhythm."
Read Next: Bitcoin ETFs Battle Heat Up: 'WE Government Plans HAS To input All BTC AND F,' Warns Max. Keiser
Picture Via Shutterstock
Designed by Benzinga Neuro, Edited by
Renowned Investor Howard Brands, WHO co-founder of Oaktree Capital, has raised concerns that A back has THE little interest rate environment, which was seen between THE Great Financial Crisis and THE epidemic of THE pandemic, could to favor harmful investment behavior.
What It happened: in A Tuesday note, Brands declared that THE natural rate, which reflects THE balance of supply And request For money without central bank interference, should has guide capital allocation the decisions. He, However, sharp out that THE financial walk has not exploited freely Since THE 90s due has THE Federal Reserves 'activist' approach, which implied pumping liquidity has avoid potential problems, reported Business Insider.
With inflation drop, investors to wait for THE Federal Reserve has slash interest rates Again, which would be impact both THE equity And bind markets. Despite This, Brands warned against waiting close to zero rates, emphasizing THE problems that arose Since THE easy money time Before THE pandemic.
"Maybe We to have A new version of Lord Acton law: easy money corrupts, And Really easy money corrupts absolutely," Brands wrote, quoting THE late investor Charlie Munger Since A interaction THE two shared.
Brands explain that while lower loan costs can spur economic growth, they can Also accelerate growth Also quickly, leading has inflation. This, In turn, would be fast THE fed has implement A more strict policy, which could to discourage economic activity And create financial disparities.
See Also: Digital Manufacturing Revolution? A Look HAS THE Industry And Innovator Shapes SHPW
Weak rates Also to have THE potential has swell active prices And encourage riskier investments, maybe leading has active bubbles. Moreover, people WHO TO DO not invest In actions earn less on their savings, exacerbate wealth inequality.
For what He Topics: This warning Since Brands come has A time When THE Federal Reserves monetary policy has has been A hot subject of discussion. Last year In November, Pierre Schiff critical fed Chair Jerome Powell inflation outlook, emphasizing THE role of excessive government expenses In conduct inflation above THE The Fed 2% target.
Wall Street banks had has recalibrate their 2024 interest rate following forecasts A conciliatory pivot Since THE Fed, indicating potential rate cuts. This was further confirmed by the Fed December meeting minutes, which suggested that interest rates are likely has Or close THE peak of THE ride a bike. THE minutes reflect A unequal progression In inflation control, particularly noting that "heart services prices are always rising has A pupil rhythm."
Read Next: Bitcoin ETFs Battle Heat Up: 'WE Government Plans HAS To input All BTC AND F,' Warns Max. Keiser
Picture Via Shutterstock
Designed by Benzinga Neuro, Edited by
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