Bloomberg Talks Apollo Chief Economist Torsten Slok Talks Energy Shock, Inflation
Mar 27, 2026
Torsten Slok, Chief Economist at Apollo, offers crisp macro views in this conversation. He discusses inflation expectations versus market signals. He explores why consumers keep spending despite falling confidence. He outlines Fed trade offs around PCE and recession risk. He examines labor market caution, oil shock timing, and the implications of record bond supply on yields and credit.
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Headline Inflation Driven By Energy Not Core Demand
- Headline inflation is rising mainly because of food and energy rather than core pressures.
- Torsten Slok points to strong travel, retail (Redbook), and hotel demand showing consumers still spending despite inflation signals.
Long Term Inflation Expectations Stay Anchored
- Long-term inflation expectations remain anchored on both market and survey measures despite short-term headline rises.
- Slok notes some measures have even started to drift down, implying markets view recent inflation as temporary.
Fed Faces Bifurcated Risk Between Inflation And Labor Weakness
- The risk distribution facing the Fed is bifurcated between persistent inflation and a harder landing with weakening labor markets.
- Slok highlights the Fed's dilemma: weigh inflation versus potential labor-market deterioration including AI effects.