By Sonal Desai, Ph.D., Chief Investment Officer, Franklin Templeton Fixed Income
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 US Federal Reserve (Fed) has expanded its balance sheet by about $400 billion since last September. This has reversed more than half of