El-Erian Predicts Foreign Capital Surge Amid U.S. Power Shift

Allianz chief economic advisor Mohamed El-Erian predicts a significant influx of foreign capital into the U.S. as the country's financial markets become more attractive due to anticipated Republican policies of lower taxes and deregulation. This trend is expected to boost U.S. economic growth and inflation, enhancing its global financial dominance. Despite concerns over potential inflation and increased deficits from Trump's policies, U.S. bonds remain appealing, aiding in financing the expected rise in national debt. The global economy may struggle to keep pace with the U.S.'s growth advantage.