During the Milken Institute Global Conference, Apollo Global Management CEO Marc Rowan expressed his belief that the economy is experiencing a soft landing. This term refers to growth continuing and avoiding a recession despite interest rate hikes by the Federal Reserve. Rowan is optimistic that this trend will continue.
Despite some mixed responses from the markets to recent economic data, the numbers support Rowan’s assessment. The U.S. economy grew by 1.6% in the first quarter, although it was the slowest pace in almost two years, but it is still expanding. In the final quarter of 2024, the economy grew at a 3.4% annualized rate. GDP growth for 2023 was at a 2.5% annualized pace, defying predictions of a mild recession at the beginning of the year.
Rowan pointed out that despite a significant increase in interest rates, the economy has remained stable. This stability 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, benefiting from $40 billion in inflows. The company also reported record quarterly debt origination volume and an increase in asset management fees