Allianz chief economic adviser: the recession is not temporary, the world is on the verge of a big change

To make matters worse, he said, liquidity-laden financial markets have been decoupled from the real world, and central bank policies are seen as "buddy-buddy" by the market, so there has been a desire to curb the central bank's exit from easing, holding it hostage through market volatility and blocking its efforts to ensure the health of the economy.

The tug-of-war between the market and the central bank is itself a threat to economic development. If the central bank maintains high interest rates for too long, the result will be financial market volatility and threaten the functioning of the financial system, further damaging the economy. But if high interest rates are kept too short and inflation is not addressed, it will further widen the gap between rich and poor and make asset bubbles even more frightening.

This in turn gives rise to a third major trend, which is for the financial system to become more fragile.

He explained that the market has become accustomed to the central bank's easing policy, and as a result, a large part of the money into the management, private equity, hedge funds and other less regulated areas. And the market volatility that has been occurring this year can be interpreted as a large number of investors looking for new investment harbors, which represents their current vulnerable status quo.

El-Erian warned the Fed is no longer facing the usual two-fold dilemma: inflation and economic growth and employment trade-offs, but a triple dilemma, with additional consideration of how to safeguard financial stability on top of the two.

In addition to El-Erian, Nouriel Roubini, a professor of economics at New York University and known as Dr. Doom, and Adam Tooze, a professor of economics at Columbia University, also made similar exclamations.

Roubini listed 10 huge economic problems facing the world, while Tooze used the term "multilateral crisis" to describe the current situation.

Roubini said a variety of factors are at play and, because of their interconnectedness, have a domino effect similar to that of a possible economic downturn.

He noted that if interest rates are raised, there could be a total collapse in stock, bond, credit and other asset prices, causing further financial and economic damage. But on the other hand, raising interest rates does help fight inflation, despite the risk of a hard landing. And all of this is because of negative supply chain shocks.

Looking ahead, El-Erian concludes, these changes mean that economic outcomes will be more difficult to predict. It may not be a simple outcome, but a "cascade effect" where one bad news follows another.