Skip to main content

Former PIMCO Chief Warns of Upcoming Recession

Nov 02, 2015
Economist and former PIMCO co-CEO Mohamed El-Erian is warning that the U.S. is at a 25-to-30 percent risk of a recession within the next two years

Economist and former PIMCO co-CEO Mohamed El-Erian is warning that the U.S. is at a 25-to-30 percent risk of a recession within the next two years.

"The road we're on is going to end,” said El-Erian in an interview this morning on CNBC’s Squawk Box.

“We cannot rely on central banks, and central banks cannot be the only game in town when it comes to policy,” said El-Erian. “By 2017, we're going to tip only way or the other."

El-Erian stated that any future recession will be the result of problems from other major economies.

"People forget how exposed we are to financial instability in the rest of the world," said El-Erian, adding that easy monetary policies created by the European Central Bank and China's central bank will contribute to global instability.

While El-Erian is on record in predicting a Federal Reserve rate hike in December, he warned that a continuation of a U.S. economy riddled with government debt and low economic growth is not sustainable.

"I don't think you can roll forward 'the new normal' for the next five years," said El-Erian.

About the author
Published
Nov 02, 2015
Maximum Acceleration, Originator Connect Network Sign Exclusive CE Agreement

Pact gives OCN guaranteed live CE at shows, creates nationwide opportunity for Maximum Acceleration

Apr 17, 2024
CMG Acquires Norcom Mortgage's Retail Side

The 25-branch addition will enhance CMG’s northeastern presence from Maryland to Maine.

Apr 12, 2024
CFPB Weighs Title Insurance Changes

The agency considers a proposal that would prevent home lenders from passing on title insurance costs to home buyers.

NEXA Begins Search For New CFO

NEXA CEO retires the president position after Mat Grella's termination.

Apr 01, 2024
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024