Conviction: The fifth element in core equity investing

The Fed held rates steady today as Chair Warsh’s tough talk on inflation failed to translate into action.

Financial markets read Kevin Warsh’s second press conference as dovish: Expectations of a near-term rate hike fell, long-term bond yields rose, the dollar weakened and so did stocks. Franklin Templeton Fixed Income CIO Sonal Desai believes it is a stretch to conclude that the new Fed Chair is just another dove. Her take is that we are seeing the inevitable heightened volatility of expectations in a changing monetary policy regime. It all boils down to the actions: If the Fed is serious about bringing inflation back to target, it will need to nudge the policy rate up.

Technological breakthroughs defined the first phase of AI, but what will the next phase bring? Learn more about the five AI shifts Franklin Equity’s Matt Cioppa is watching.