Howard Marks: US Fiscal Deficits Could Undermine Dollar Purchasing Power
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
Howard Marks stated that continued large fiscal deficits by the US government could eventually undermine the purchasing power of the dollar, even if the debt is denominated in the US currency. This concern is raised while the US economy remains relatively strong and interest payments on federal debt are rising.
From moneycontrol.com
Why it matters
Marks cautioned that while investors might diversify away from the dollar into non-US assets, this shift introduces other risks. He noted that many developed-market companies outside the US have weaker growth prospects and less scale compared to leading American companies.
From moneycontrol.com
Who's involved
- Howard MarksCo-Chairman of Oaktree Capital Management, who issued the warning
- Oaktree Capital ManagementAmerican global asset management firm where Howard Marks serves as Co-Chairman
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
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The entities involved
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Howard Marks
Co-Chairman, Oaktree Capital Management