By Sonal Desai, Ph.D., Executive Vice President, Chief Investment Officer, Franklin Templeton Fixed Income
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. She argues deflation risks are overblown and looser monetary policy will lead to increased financial market distortions.
The Federal Reserve's (Fed's) interest rate cut last month was unnecessary, in my view. I think the US economy is doing okay, deflation