Central Banks

Fed’s ‘Loaded Gun’ Could Aid Economy, Apollo’s Zelter Says

  • Fed put is back in the market, firm’s co-president says
  • But cost of capital will be higher for five to seven years
WATCH: Zelter says the US economy is in “this interesting Goldilocks period” and that the Fed has “a loaded gun” to use as needed.Source: Bloomberg
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The US Federal Reserve’s decision to keep rates high means it has a “a loaded gun that they can use as needed” if economic conditions worsen, according to James Zelter.

“Concern about a slowdown has been on everybody’s mind the last six to seven months,” the Apollo Asset Management co-president said in an interview on Bloomberg TV. “The Fed’s done a really nice job of maintaining higher rates.”