US Federal Reserve - Beyond Bulls & Bears

Fixed Income

On My Mind: The Fed fights inflation, the markets fight the Fed

Markets want to believe policy interest rates will soon fall—but inflation and growth data tell a very different story, argues Franklin Templeton Fixed Income CIO Sonal Desai.

Sonal Desai, Ph.D. | May 10, 2023

Equity

Notes from the Trading Desk – Europe

Franklin Templeton’s Notes from the Trading Desk offers a weekly overview of what our professional traders and analysts are watching in the markets. As part of Templeton Global Equity Group, the European equity desk is manned by a team of professionals based in Edinburgh, Scotland, whose job it is to monitor the markets around the world. Their views are theirs alone and are not intended to be construed as investment advice.

March 20, 2023

Fixed Income

On my mind: A different kind of pivot

Markets hoped for a dovish Federal Reserve “pivot,” but got a hawkish surprise instead. Brace for more volatility as the yield curve adjusts, warns Franklin Templeton Fixed Income CIO Sonal Desai. She sees the fixed income outlook as more constructive moving further forward in 2023.

Sonal Desai, Ph.D. | November 02, 2022

Fixed Income

On my mind: Staying on message

The Fed delivered another 75 bps rate hike and reiterated its Jackson Hole message: reducing inflation is now its one and only priority. But the Fed's forecasts still seem too optimistic, and this could feed extended uncertainty and volatility in markets. Our Fixed Income CIO Sonal Desai shares her thoughts.

Sonal Desai, Ph.D. | September 21, 2022

Equity

Notes from the Trading Desk – Europe

Franklin Templeton’s Notes from the Trading Desk offers a weekly overview of what our professional traders and analysts are watching in the markets. The European desk is manned by eight professionals based in Edinburgh, Scotland, with an average of 15 years of experience whose job it is to monitor the markets around the world. Their views are theirs alone and are not intended to be construed as investment advice.

June 20, 2022

Perspectives

Turbulence ahead

The US Fed just made the biggest interest-rate increase since 1994. Should we be worried? Stephen Dover, Head of Franklin Templeton Institute, discusses the rising risk of a recession.

Stephen H. Dover, CFA | June 16, 2022

Multi-Asset

Fed Pivot Becomes Fed Prayer

The US Federal Reserve is turning increasingly hawkish—hiking rates fast enough to slow inflation while maintaining economic growth will be a monumental task. The Franklin Templeton Investment Solutions team opines on what to expect from the Fed and gauges whether it is already behind the curve.

Gene Podkaminer, CFA | March 30, 2022

Fixed Income

On My Mind: Fed and Inflation: You Can’t Always Get What You Want

The Fed seems to have been caught by surprise by its own policy and says this is not the inflation it was looking for. Sonal Desai, Chief Investment Officer, Franklin Templeton Fixed Income, shares her thoughts on why inflation should not have come as a surprise and why investors need to brace for higher volatility as the Fed adjusts its policy stance.

Sonal Desai, Ph.D. | December 16, 2021

Fixed Income

On My Mind: Inflation: Don’t You (Forget About Me)

The US Federal Reserve finally acknowledged inflation is not a “transitory” problem and signalled a greater degree of concern; but investors seem to think that the Fed will blink when markets balk. With consumer inflation at multi-decade highs and COVID-19 risks still alive, what’s next for the monetary policy response—and market implications—as we move into 2022? Our Fixed Income CIO Sonal Desai shares her views.

Sonal Desai, Ph.D. | December 08, 2021