Snapshot View: Federal Reserve Remains On Hold

Snapshot View: Federal Reserve Remains On Hold

Snapshot View: Fed Remains On Hold by Franklin Templeton Investments

The US Federal Reserve (Fed) decided not to raise interest rates at its September policy meeting, even though some market observers would argue there were plenty of reasons to do so. Here, we share a quick take on the situation from Templeton Global Macro CIO Michael Hasenstab, who feels the Fed’s lack of action risks putting it behind the curve when it comes to inflation, and Templeton Emerging Markets Group Executive Chairman Mark Mobius, who says emerging markets can weather a Fed rate hike when it does come.

Michael Hasenstab, Ph.D.
Executive Vice President

Chief Investment Officer
Templeton Global Macro

Bonhoeffer Fund July 2022 Performance Update

Screenshot 27Bonhoeffer Fund's performance update for the month ended July 31, 2022. Q2 2022 hedge fund letters, conferences and more The Bonhoeffer Fund returned 3.5% net of fees in July, for a year-to-date return of -15.8%.   Bonhoeffer Fund, LP, is a value-oriented private investment partnership for . . . SORRY! This content is exclusively for Read More

The longer the US Federal Reserve (Fed) does not raise interest rates, the greater it risks falling behind the curve, in our view. The United States is currently near full employment, a condition that we think would justify rate normalization, yet the Fed has taken no action. A number of observers have stated that sluggish US (and global) economic growth is good reason for the Fed not to raise rates, but we would argue that monetary policy alone cannot engineer growth, nor is it the Fed’s role. Instead, the Fed should be focused on its dual mandate of maximizing employment and maintaining price stability.

If the United States is actually experiencing a “new normal” where growth remains lower long term, then