Investors have been warning about a recession for over a year now, but 14 months after the Federal Reserve began tightening its grip on the economy and raising interest rates, employment is higher than ever and wages are still going up. All the rules say the U.S. is supposed to be in a downturn right now, but most Americans aren’t feeling one. That may be because this is a different type of recession than the one economists are used to, according to Marc Rowan, billionaire investor and CEO of Apollo Management, a private equity firm with over $500 billion under management.
Even though wage increases over the past year have struggled to keep up with inflation, young workers and low-income households have seen the biggest nominal pay raises in a tight labor market. Meanwhile, people who own assets, who are more likely to be middle-class or wealthy, are more likely to notice an impact, Rowan said in an interview with CNBC this week.
