El-Erian Sees a Credit Contraction, Not a Credit Crunch

The transcript discusses the IMF World Bank meetings, emphasizing that the current situation is not a banking crisis but a credit contraction, which affects small businesses more than large ones. It highlights the impact of higher interest rates on business costs and capital requirements, making it difficult for banks to operate. The discussion also touches on the Federal Reserve's challenges in navigating economic stability, inflation, and employment, with varying estimates on the impact of rate hikes.

What does the phrase 'surviving and not thriving' imply in the context of the current economic environment?

What challenges does the Federal Reserve face in maintaining price stability and financial stability?