Apollo’s Kleinman Says Wage, Housing Inflation to Limit Fed Cuts
- Data doesn’t support investor optimism, Kleinman says
- Apollo holds view the US economy will avoid a recession
Scott Kleinman
Photographer: Lauren Justice/BloombergThis article is for subscribers only.
Investors are placing overly high expectations on multiple rate cuts by the Federal Reserve over the next 12 months, Apollo Global Management Inc. Co-President Scott Kleinman said.
Futures traders are pricing in 10 quarter-point cuts to the cash rate over the coming year by US monetary policymakers. Kleinman said that would be unlikely without a recession, and yet markets more broadly aren’t explicitly pricing in an economic contraction, he said.