Submitted by Taps Coogan on the 8th of June 2018 to The Sounding Line.
Allianz chief economic advisor Mohamed El-Erian recently spoke with CNBC to point out the increasing out-performance of the US economy.
“The US economy is outpacing other large advanced economies and in a meaningful way. You have all elements of… domestic demand kicking in: consumption supported by a very strong labor market, business investment, and government spending. So the US economy will continue to outpace the rest of the world and that’s because it’s the only economy right now that’s being driven by policies as opposed to ad hoc factors… What’s important to look at is the interest rate differentials with Europe. So today, the 10-year, which seems low at 2.91% is actually about (2.52%) above the German bond yield. That’s a lot and keep an eye on that because the US bond market trades in a global sense and these interest rate differentials have become quite large.”
Enjoy the full interview above.
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