By Sonal Desai, Ph.D., Executive Vice President, Chief Investment Officer, Franklin Templeton Fixed Income
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. Powell appeared to struggle to reconcile his admission the US economy is strong with this decision, says Franklin Templeton Fixed Income CIO Sonal Desai. She shares her thoughts on the July policy meeting and the potential market implications.
In the press conference following the Federal Reserve's (Fed's) July 31