El Erian says the US economy and stocks have likely dodged a recession

El-Erian writing for Dow Jones / Market Watch (gated), in brief:

• The U.S. is the sole major engine of global growth in an increasingly less-stable world
• Sticky inflation combined with slower growth will put the Fed between a rock and a hard place.
• I put the chance of a U.S. soft landing at around 50%; the probability of a (misleadingly named) “no landing” – higher growth with no additional inflationary pressures and genuine financial stability – at around 15%; and the chance of recession and new threats of financial instability at 35%.

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