Mohamed El-Erian, Allianz chief economic advisor, joins ‘Closing Bell’ to discuss whether consumers will slam the brakes on spending, if the Fed has a choice whether or not to aggressively hike rates and the odds of a hard landing.
Instead, liquidity in securities markets could continue to decline if banks continue to turn away from reserves. In many ways, this represents a return to traditional banking practices. But securities markets are unlikely to thrive if settlement liquidity is withdrawn.
“We are seeing a gradual decline in the dollar,” said Massimiliano Castelli, head of strategy for global sovereign markets at UBS. “The picture that emerges is one of a multipolar currency system.”
Inflation is what is killing the US economy and millions of households. Financially speaking.