During the Milken Institute Global Conference, Apollo Global Management CEO Marc Rowan expressed optimism about the U.S. economy, stating that it had achieved a soft landing. This refers to growth continuing and avoiding a recession despite interest rate hikes by the Federal Reserve. Rowan believes this trend will continue, citing recent economic data as evidence.
The U.S. economy grew by 1.6% in the first quarter of 2024, which is slower than predicted but still expansionary. In the final quarter of 2023, GDP growth was at a 3.4% annualized rate, defying predictions of a mild recession at the beginning of the year. Despite some mixed responses from markets to recent economic data, these numbers support Rowan’s assessment that the economy is stable and has achieved a soft landing.
Rowan pointed out that despite an increase in interest rates, the economy has remained stable, which is a key characteristic of a soft landing. Apollo’s first-quarter earnings reflect a healthy economy, with total assets under management increasing by 12% year over year to $671 billion and benefiting from $40 billion in inflows. The company also reported record quarterly debt origination volume and an increase in asset management fees.
Apollo Global Management’s shares have been performing well so far this year, up 22% compared to an S&P 500 gain of 9%. Yahoo Finance provides updates on economic news and indicators for those interested in staying informed about industry developments.
In summary, Marc Rowan expressed optimism about the U.S economy achieving a soft landing despite interest rate hikes by the Federal Reserve due to recent economic data supporting his assessment that growth continues and avoiding recession predictions.
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