The US Federal Reserve continues to use whatever tools it can to help combat economic fallout from the coronavirus. Sonal Desai, Chief Investment Officer, Franklin Templeton Fixed Income, calls its latest response “a whole new level” of stimulus.
The US Federal Reserve took dramatic action on Sunday, March 15, slashing interest rates and relaunching quantitative easing and other measures to battle the economic impacts of the coronavirus.
The US Federal Reserve surprised markets on Tuesday with an interest-rate cut, but will it restore investor confidence? Franklin Templeton Fixed Income CIO Sonal Desai shares her initial reaction.
The US Federal Reserve (Fed) has gone back to expanding its balance sheet. Some claim that quantitative easing (QE) is back; the Fed denies it. What we call it isn’t the point, says Sonal Desai, Franklin Templeton Fixed Income CIO—what matters are the implications of this “permanently loose” policy stance for asset prices, investment strategy and market volatility.
The many gloomy predictions for 2019 did not come to pass, but can we be more optimistic for 2020? Franklin Templeton Fixed Income CIO Sonal Desai draws the key lessons from last year and outlines what we should expect for the year ahead and her main concerns, with political uncertainty top of the list.
Our senior investment leaders have a cautiously optimistic outlook for 2020. They still do not see a global recession looming and believe there are plenty of reasons to remain invested.
Investors could be in for a bumpy year ahead, according to Franklin Templeton Fixed Income CIO Sonal Desai. She emphasizes the importance of separating the facts from the headlines, but also thinks it’s a good time to look to “de-risk” portfolios to some extent, while still remaining invested.
Data science has brought investors powerful new tools to help generate returns, so is there still need for a human touch? Franklin Templeton Fixed Income CIO Sonal Desai weighs in on the role of quantitative science within the active-passive investment debate.
Bouts of volatility hit markets across the globe in the third quarter of 2019 amid continued uncertainties about global growth and trade. Central banks took notice, with the US Federal Reserve easing interest rates for the first time in more than a decade and the European Central Bank also cutting rates and reintroducing quantitative easing.
The US Federal Reserve cut its benchmark short-term interest rate for the second time this year, but some observers were disappointed the Fed didn’t more strongly signal future easing moves.
The inversion of the Treasury yield curve has recently gotten a lot of attention in the financial press as being a harbinger of economic malaise ahead. Our Fixed Income CIO Sonal Desai says these conclusions are misguided.
In light of the Federal Reserve’s recent interest-rate cut, our Fixed Income CIO Sonal Desai takes a look at how US central bank thinking seems to have changed, and whether there’s a risk of having interest rates too close to zero.
The US Federal Reserve cut its benchmark short-term interest rate for the first time in 11 years in what Chairman Jerome Powell called a “mid-cycle adjustment” to sustain the US economic expansion.
The US Federal Reserve kept interest rates steady at its June meeting; it emphasized its data-driven approach to policy decisions but noted it believes the case for lower interest rates to be strengthening.
What’s the investment lesson in Europe’s recent parliamentary elections? Our Fixed Income CIO Sonal Desai says it’s differentiation. Read more of what’s on her mind about this topic.
The prospect of a “trade war” between the United States and China has caused some investor trepidation over the past year. But are the fears of economic fallout from this “war” warranted? And, was there ever really a war at all?
The US Federal Reserve’s decision to keep interest rates steady at its March meeting came as little surprise, but its updated “dot plot” projections were interpreted by markets as sending a decidedly more dovish signal than expected.
In economic (and political) circles, “Modern Monetary Theory” has gotten some buzz of late. What does it mean—and does it have any merit? Franklin Templeton Fixed Income Chief Investment Officer Sonal Desai thinks it’s not only potentially dangerous, but offers intellectual fuel for populism.
While the financial markets seem to be betting on a very extended pause in the US Federal Reserve’s multiyear tightening cycle, Franklin Templeton Fixed Income Group Chief Investment Officer Sonal Desai has another idea. Here, she makes the case that interest-rate hikes may still be on the table this year.
With markets reacting in part to geopolitical events, it’s hard not to be distracted by news headlines. To help sift through some of the noise, several of our senior investment leaders recently participated in a roundtable discussion of the events shaping the global markets today, the implications for investors and where they see potential opportunities ahead.