---
title: "Apollo warns: Growth slowdown and stubborn inflation coexist, Federal Reserve focuses on stagflation risk in 2026"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/270104085.md"
description: "Apollo Global's Chief Economist Torsten Slok warned that as the Federal Reserve looks ahead to 2026, it is increasingly focused on the risk of stagflation, where economic growth slows while inflation remains stubbornly high. The FOMC's forecast report indicates that the upward risks to inflation and unemployment rates may complicate monetary policy, limiting the Federal Reserve's ability to stimulate growth. Although stagflation is not the most likely outcome, policymakers are preparing for this possibility, and investors should be aware of the economic uncertainties in 2026"
datetime: "2025-12-18T04:32:08.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/270104085.md)
  - [en](https://longbridge.com/en/news/270104085.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/270104085.md)
---

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# Apollo warns: Growth slowdown and stubborn inflation coexist, Federal Reserve focuses on stagflation risk in 2026

According to the Zhitong Finance APP, Torsten Slok, Chief Economist at Apollo Global, stated that Federal Reserve officials are increasingly concerned about the risk of stagflation as they look ahead to 2026. This risk manifests as a situation where economic growth slows down while prices continue to rise.

Slok's views reflect the way decision-makers describe economic risks in the prepared forecast reports ahead of the Federal Open Market Committee (FOMC) meetings.

As part of this process, FOMC participants are asked to assess whether the risks of inflation and unemployment are tilted to the upside or downside relative to their baseline outlook. Recent forecasts have shown significant changes: officials generally believe that there are greater upside risks for both inflation and unemployment, which is an extremely unusual and concerning combination.

Slok pointed out that these assessments indicate that the Federal Reserve is worried about a period where, even if labor market conditions weaken, price pressures remain unrelenting. Such an outcome would complicate monetary policy and limit the Fed's ability to stimulate growth without exacerbating inflation.

Although the Fed's baseline forecast does not assume stagflation as the most likely outcome, the risk balance suggests that decision-makers are preparing for this possibility. For investors, this information seems to emphasize that the economic path entering 2026 may be fraught with challenges, with uncertainties surrounding growth, employment, and inflation

### Related Stocks

- [Apollo Global Management, Inc. (APO.US)](https://longbridge.com/en/quote/APO.US.md)

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