Bloomberg Surveillance · Thursday, August 27, 2026
Torsten Slocke of Apollo predicts that interest rates will stay higher for longer due to persistent inflation, a rising U.S. deficit, and pressures from hyperscaler issuance. Fed Chair Kevin Walsh is expected to provide more clarity on the Fed's economic outlook and reaction function at Jackson Hole, though specific rate hike numbers are unlikely.
“the bottom line for investors is... that interest rates are going to stay higher for longer.”
“Well, I think that he will have to deliver something that is clearer than what he did at the July press conference. And the most likely outcome is that I think that he will deliver. more clarity about his economic outlook.”
“Number one, of course, the fiscal situation is not great. That's putting upward pressure on the term premium, on long-term interest rates. That means long rates are going to be higher for longer.”