On My Mind: Fed To Markets - Keep Dancing


  • Markets think the war against inflation has been won—and the Fed seems to believe it too—but has it?
  • The press conference following the Fed’s January 31-February 1 policy meeting seems to have turned back the clock to at least pre-Jackson Hole, if not all the way to the Fed’s “inflation is transitory” days.
  • Powell went through his stable of hawkish arguments, but he sounded like he was going through the script and did not truly believe it.
  • The Fed seems now too tempted by the possibility of achieving the Holy Grail, of bringing inflation down from 9% to 2% while retaining full employment all along, and with minimal, short-lived damage to financial asset prices.

Free stage with lights, lighting devices on the consert.

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By Sonal Desai, Chief Investment Officer, Franklin Templeton Fixed Income

Markets think the war against inflation has been won—and the Fed seems to believe it too—but has it? Franklin Templeton Fixed Income CIO Sonal Desai analyzes

financial conditions

This article was written by

Franklin Resources, Inc. (NYSE: BEN) is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Bissett, Fiduciary Trust, Darby, Balanced Equity Management and K2 investment teams. The San Mateo, CA-based company has more than 65 years of investment experience and over $908 billion in assets under management as of May 31, 2014. For more information, please call 1-800/DIAL BEN® or visit franklinresources.com.

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