Bloomberg Talks Apollo Global Management President Jim Zelter Talks U.S. Deficit
Jun 26, 2025
Jim Zelter, President of Apollo Global Management, dives into the intricacies of the U.S. economy, addressing the nation's deficit and the weakened dollar. He dismisses speculation around Trump’s Federal Reserve Chair pick as mere distraction. The conversation illuminates the essential role of private capital in economic growth and touches on the rising AI investment landscape. Zelter also discusses New York's shifting political dynamics and its impact on businesses, providing a clear perspective on navigating these challenges.
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Trump's Fed Chair Naming Strategy
- President Trump uses early Fed Chair naming talks as a media distraction while maintaining leverage to blame the current Fed chair.
- The real economic issue remains the US deficit, overshadowing tariffs and foreign policy concerns.
Dollar Decline Is Technical
- The dollar's recent decline largely reflects unhedged global investors catching up rather than fundamental damage to the US economy.
- Hedging profits by banks this quarter highlight this technical adjustment rather than a long-term economic concern.
Fed Rate Cuts Are Uncertain
- Despite economic slowing signals, inflation remains around 3%, complicating Fed policy decisions on rate cuts.
- Jim Zelter predicts only one rate cut rather than the multiple cuts the market expects, with rates staying slightly higher longer.