Potential Federal Reserve Rate Pause Due to Inflation Concerns

October 3, 2025 - 17:16

In a recent discussion, Torsten Sløk, a partner and chief economist at Apollo Global Management, shared insights on the Federal Reserve's potential approach to interest rates amid rising inflation in services and consumer goods. Sløk emphasized that if inflation in these sectors continues to pose a significant risk, the Fed may opt to pause its interest rate cuts rather than proceed with further reductions.

He pointed out that the economic landscape is currently influenced by various factors, including the recent US government shutdown, which has delayed the release of the September jobs report. This delay has created uncertainty around key economic indicators that the Fed typically relies on for decision-making. Sløk's analysis highlights the importance of closely monitoring inflation trends and labor market data as the Fed navigates its monetary policy in response to evolving economic conditions. The discussion underscores the delicate balance the Federal Reserve must maintain to support economic growth while keeping inflation in check.