[Oak Tree Capital Co-Founder: Does Not Believe the Fed Needs to Cut Rates Significantly, Questions AI Debt Financing Logic] Jin10 Data, December 11 – Howard Marks, co-founder of Oak Tree Capital Management, has warned that the Federal Reserve's 'intervention' in funding costs will drive people toward higher-risk investments as the return environment slows. He stated that he does not believe interest rates need to be significantly lower than current levels. Marks said: 'I think the Fed should remain passive most of the time, only stepping in to assist when the economy is severely overheated, trending toward hyperinflation, or in a severe downturn 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' of the impact of artificial intelligence on employment and questioned the practice of large-scale enterprises issuing massive amounts of debt at extremely low yields to finance AI deployment, especially when AI demand remains uncertain.