US stocks slumped on Monday on growing concerns about the economy. It comes after President Trump, in interviews over the weekend, declined to rule out a recession.
On Morning Brief, Queens' College, Cambridge president Mohamed El-Erian weighs in, saying though recession risks have risen, it is not his base case.
"My probability of US recession has gone up from 10% to 25 to 30%. So it's not the baseline... The reason why it's not the baseline has to do with the structural strengths of the US economy. It also has to do with what we've been promised down the road in terms of deregulation, tax cuts, and the reality of low energy prices," he says.
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This post was written by Stephanie Mikulich.
