Apollo Executive Warns of Impending "Mountain of Inflation" for 2026 (Yahoo Finance Short)

On December 11, 2025, Yahoo Finance published a short video [1] highlighting an Apollo Global Management executive’s warning of impending inflationary pressures. The core analysis draws from a December 4 note by Torsten Sløk, Apollo’s chief economist, who identified reaccelerating U.S. economic growth as a primary driver of potential 2026 inflation [2]. Sløk’s thesis centers on two key catalysts: stimulus from the One Big Beautiful Bill Act (OBBBA) and the fading of trade war risks, both of which are expected to boost demand. Additionally, Sløk warns that politicized monetary policy—if the incoming Fed chief lowers rates for non-economic reasons—could further exacerbate inflation [2].

This warning comes on the heels of a December 10, 2025 Fed decision to cut rates by 25 basis points while signaling a pause in further reductions, citing lingering inflation concerns [3]. The Fed’s action adds context to Sløk’s caution, as it indicates the central bank is already wary of inflation resurgence.

Sløk’s analysis contradicts the market’s prevailing “soft landing” narrative, which prices in continued Fed rate cuts in 2026. Stronger-than-expected economic growth and subsequent inflation could force the Fed to pause or reverse its rate-cutting cycle, challenging current stock and bond valuations that rely on looser monetary policy [2].

1. The inflation warning directly challenges the consensus market outlook, introducing uncertainty about the 2026 economic landscape.
2. The Fed’s recent pause signal aligns with Sløk’s concerns, suggesting the central bank is already factoring in potential inflationary risks.
3. A resurgence in inflation could have cascading effects on asset prices, particularly growth stocks that have benefited from low interest rates, and bond markets as yields rise [2].

• Market Risk
  : A spike in inflation could trigger a correction in equities (especially growth stocks) and a sell-off in bonds as yields increase [2].
• Policy Risk
  : The Fed may be forced to tighten policy again, increasing borrowing costs for consumers and businesses, which could slow economic growth [3].
• Uncertainty Risk
  : The warning undermines the “soft landing” consensus, leading to heightened investor anxiety [2].

No explicit opportunities are identified in the available analysis.

• Event Source
  : Yahoo Finance short video published December 11, 2025 [1].
• Core Analysis
  : Torsten Sløk’s December 4, 2025 note outlining 2026 inflation risks [2].
• Recent Fed Action
  : December 10, 2025 25bps rate cut with a pause signal [3].
• Inflation Catalysts
  : OBBBA stimulus, fading trade war risks, potential political Fed intervention [2].
• Information Gaps
  : Exact video transcript, OBBBA details, and quantified inflation projections [1,2].