by Harry Brumpton
BNN Bloomberg
(Bloomberg) — 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.
The New York-based firm’s own central view is that the country will avoid such a fate and that brewing wage inflation and housing inflation will limit how much the Fed will be able to reduce its rates settings, he said.