Apollo CEO: Don't listen to what the Fed says, inflation in the United States has not yet been tamed!

A week after Trump won the U.S. presidential election, Apollo Global Management co-president Scott Kleinman warned the market not to be too complacent about the current inflation and interest rate trends in the U.S. Trump has promised to impose a substantial amount of import tariffs, and economists warn that these tariffs could exacerbate inflation. Meanwhile, the Fed has started to lower interest rates, hoping to bring inflation back to 2%. In an interview on Tuesday, Kleinman said, "Inflation is not under control. The Fed can say whatever they want. You just need to open your eyes and look around." However, Kleinman noted that apart from the potential impact of Trump's policies, inflation pressures have already formed due to global trends such as digital infrastructure development and decarbonization. He said, "We will have to endure an environment of higher interest rates for a longer period of time. The more the Fed lowers rates, the harder it is to control inflation." He echoed comments made by the company's CEO, Marc Rowan. Rowan stated last month that he believed the Fed had no reason to continue lowering rates to stimulate the economy. Trump's victory also led people to predict that the merger and acquisition environment in the coming years would be more favorable with the help of relaxed policies from antitrust regulators. While Kleinman acknowledged this expectation, he said that the terms of deals reached would depend more on the strength of the underlying economy. He said, "It all starts from the economy. In recent years, the economy has been very strong despite a regulatory environment that has been quite difficult for businesses." Apollo announced last week that its adjusted third-quarter net profit was $1.13 billion, or $1.85 per share, exceeding analyst expectations of $1.73 per share. The company, targeting wealthy individuals, saw its assets under management increase to $733 billion, a 16% increase from the same period last year. Earlier this year, Kleinman said the company sells about $1 billion in semi-liquid products to wealthy individual investors each month. On Tuesday, Kleinman said that private capital getting involved in a broader individual savings market is a focus, noting that regulatory agencies may now be more willing to encourage this.