Mohamed El-Erian on 2 factors that makes a US recession more likely

<p>El-Erian is Allianz chief economic adviser. He wrote an op-ed in the Financial Times (gated). </p><p>Business Insider highlight his main points from the FT piece: </p><p>Two reasons why America's odds of avoiding a recession may be dwindling
</p><ol><li>Yields on the 10-year US Treasury bond have jumped an "eye-popping" percentage point since the end of the June
</li></ol><ul><li>Resulting in higher rates for firms and houselholds, while mortgage rateshave hit a 23-year high
</li></ul><p>2. Resurgent inflation</p><ul><li>
Inflation re-accelerated in August to 3.7% year-over-year, higher than the 3.2% reported in July.</li><li>

"Adding fuel to this fire are high prices for oil amid solid demand, continued production cuts by OPEC+ and heavily depleted inventories. There is a material risk of this leading to higher inflation for a broader range of goods and services"</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.