El-Erian: Expect slower U.S. growth and higher Treasury yields — but America will continue to outperform other major world economies
by Mohamed A. El-Erian
Market Watch
Political and geopolitical upheaval — and the limited prospects for significant improvements — pose a risk to U.S. economic exceptionalism.
It is something of a tradition every December to take stock of the year that is ending and consider what might lie ahead. This is true on a personal level: in my family, we tend to do this around the dinner table. It is also true more broadly, with the time of year inviting an examination of the intersection of economics, national politics, and global geopolitics.
You would be forgiven if, as a starting point, you expected these three areas to be in alignment. They are deeply interconnected, which suggests self-reinforcing dynamics. But 2024 brought some unusual dispersion in this relationship that actually widened, rather than narrowed, over the course of the year.