美联储官员上个月决定自四年来首次降息，降息幅度为50个基点。本周，美联储主席鲍威尔的讲话表明将继续降息，但步伐可能放慢。Apollo's CEO is concerned that the Federal Reserve may be overstimulating the economy and has issued a warning about the current pace of government spending.
Apollo Global Management Inc. CEO Marc Rowan stated that he believes there is no reason for the Federal Reserve to continue lowering interest rates to stimulate the economy.
"Financing is still active. Real estate prices are rising," Rowan said in an interview with Bloomberg Television on Wednesday. "It is currently unclear whether we still need further interest rate cuts."
Federal Reserve officials decided to cut interest rates for the first time in four years last month, with a cut of 50 basis points. This week, Federal Reserve Chairman Powell's speech indicated that rate cuts will continue, but the pace may slow down.
In an interview the day after Apollo's triennial Investor Day, Rowan expressed concerns about the Federal Reserve potentially overstimulating the economy.
He said, "To some extent, if we accelerate economic growth to the point where we have to go in another direction, that will not be a good day."
Apollo revealed ambitious targets at the Investor Day on Tuesday, aiming to increase assets under management to $1.5 trillion within five years and generate $10 billion in annual income.
Rowan mentioned on Wednesday that Apollo may establish partnerships with more banks, similar to the agreement with Citigroup for private credit investments. He stated that the company may establish partnerships related to international, investment-grade, and infrastructure.
The CEO stated that the difference between public investment-grade debt and private investment-grade debt is continuing to narrow, especially when credit rating agencies indicate that their quality is the same.
"18 months later, I believe investors will not know the difference," Rowan said. "Everything that exists in the public market will enter the private market."
He said that these developments will also extend to the realm of private equity investments. He mentioned that investors who are overallocated in a few large stocks can increase their returns by 50%-60% by adding private equity to their 401(k) portfolios.
Rowan also raised concerns about the current pace of government spending, noting that the USA is "spending the money of the next generation."
Editor/Lambor
