Top Economist Warns Odds of Avoiding Recession Are Fading as Inflation Stays High, Rate Hikes Intensify Pain

Top economist Mohamed El-Erian says the odds of the US avoiding a recession are diminishing. He points to two concerning economic trends.

Aggressive Fed interest rate hikes are causing an "intense" period of rising rates that is hurting consumers and companies.

Inflation rebounded higher in August, fueling worries it could remain stubbornly high and eat into profits.

Higher oil prices could further boost inflation across various goods and services.

Markets are adjusting but the real economy has more pain ahead from the bumpy road of higher rates, per El-Erian.