Economist Mohamed El-Erian said Monday he puts the risk of a recession in the United States at 25 percent to 30 percent.
“The road we’re on is going to end. We cannot rely on central banks, and central banks cannot be the only game in town when it comes to policy,” the former Pimco co-CEO said in a CNBC “Squawk Box” interview. “By 2017, we’re going to tip only way or the other.”
El-Erian said the American economy will continue to heal on its own, but growth troubles in other parts of the world, such as China, are holding back the U.S. He pegs domestic growth at 2 percent to 2.5 percent.
The chief economic advisor to Germany’s Allianz, parent of Pimco, also said investors should get ready for more stock market volatility in the months ahead as the Federal Reserve and world central banks move in opposite directions.