alliance Chief Economic Advisor and recognized economist Mohamed El Erian allegedly said Although there were shocks that affected the banking system, a banking crisis is definitely out of the question.

What happened: “First of all, we are not in a banking crisis. We are nowhere near a banking crisis. We had shocks that affected some banks. They need the big banks that are in trouble to get into a banking crisis and they won’t get into trouble,” he said told CNBC.

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On the bond market: El-Erian said he believes the bond market has been incredibly volatile, citing the example of the two-year Treasury yield, which rose from about 3.60% to about 4% in a matter of days.

“Last month the range was 150 basis points. This is a two-year period that is said to depend on Fed expectations. So the bond market itself is trying to figure out where to go, and we’ve now found what I’ve feared for a long time, which is that the price isn’t as good as it used to be because of the many distortions in bond markets.” he told CNBC.

US markets ended on a mixed note Monday as investors and traders started the week on a cautious note ahead of Wednesday’s CPI data, which will set the course for the future Those of the Federal Reserve next political decision.

The SPDR S&P 500 ETF Trust SPY closed 0.1% higher during the Invesco QQQ Trust Series 1 QQQ 0.05% lost.

On the recession: El-Erian also expressed confidence that a recession could be avoided. “In my opinion there is no reason why we should go into a recession other than making another mistake in Fed policy. Check out Friday’s jobs report. It had what people wanted to see — solid job growth, higher labor force participation. It’s good for the demand and supply side of this economy,” he said.

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