Apollo: The market is digesting the Fed rate cut scenario too eagerly; expecting a rate cut before the end of the year.

Apollo's chief economist, Torsten Slok, stated that the market's expectations for a rate cut in the United States are too high, as the Federal Reserve must assess the impact of tariffs and measures to expel immigrants on inflation. He predicts that there will be one rate cut by the end of this year. "I believe the market should take very seriously the statement from Fed Chairman Powell that 'we expect substantial inflation in the coming months'," Slok said. He also mentioned that the expulsion measures may also lead to wage inflation in sectors such as agriculture, construction, leisure, and the food and entertainment industry, bringing upside risks for the prices in the service industry.