Franklin Templeton Fixed Income CIO Sonal Desai shares her perspective on the oil shock’s impact on growth, inflation and financial markets.

Franklin Templeton Fixed Income CIO Sonal Desai shares her preliminary views on the impact the conflict in Iran will likely have on bond yields, the US dollar and emerging market assets.

Franklin Templeton Fixed Income CIO Sonal Desai believes inflation is likely to remain stubbornly above target. With growth robust and the labor market showing signs of stabilization, this suggests the Federal Reserve’s easing cycle has already come to an end.

Looking ahead to 2026, hear from Franklin Templeton Fixed Income CIO Sonal Desai, and several portfolio managers as they share their market expectations.

Looking ahead to 2026, Franklin Templeton Fixed Income CIO Sonal Desai says that macro is back in the driver’s seat for financial markets’ performance and investment strategies.

In its October meeting, the Federal Reserve may have delivered the last rate cut of this year—and possibly the last of this easing cycle. Franklin Templeton Fixed Income CIO Sonal Desai explains her view on further monetary easing.

Growth is holding up across major economies, according to the Franklin Templeton Fixed Income team, but geopolitics and energy prices are raising inflation risks. Policy remains the key swing factor, with central banks potentially diverging. Find out more in the latest FTFI Macro Views.

The Bank of Japan appears to be an outlier, anticipating two interest rate hikes in 2026, while North American and European Central Banks are likely pausing and calling for steady as she goes. Get an overview of central bank actions and the likely trajectory in the months ahead from Franklin Templeton Fixed Income.

The Franklin Templeton Fixed Income team believes the US economy is expected to remain resilient in 2026, while the euro area faces cautious optimism. Japan’s growth is underpinned by fiscal expansion and robust private demand. Find out more in the latest “Macro Views.”

Franklin Templeton Fixed Income economists weigh in on the future of monetary policy across the globe. US Federal Reserve Chair Jerome Powell hints at a potential rate cut in September. Meanwhile, the outlook for the eurozone is looking cautiously optimistic as business confidence rises. While wage growth progression and sticky food inflation are key factors likely to influence the BoJ's future rate decisions. Find out more in the latest “Macro Views.”

Franklin Templeton Fixed Income economists explore tariffs’ potential impact on growth and inflation in the United States and euro area. Meanwhile, all eyes are on the implementation of the German fiscal announcement. The recent Bank of Japan meeting was dovish, and markets were quick to pare back expectations on the pace of interest rate hikes as growth headwinds overshadowed inflation and wage concerns.

Franklin Templeton Fixed Income economists explore the impact of proposed changes to US tariffs and the implications for other economies. Meanwhile, the eurozone contemplates increasing defense spending given a United States that promises to be less active in global security, and the Bank of Japan tightens monetary policy in light of increased price pressures.

As the Middle East conflict causes widespread uncertainty for global financial markets, this paper offers a guide to the potential duration of volatility and the different impacts likely for emerging markets in the region and around the world.

The removal of Venezuela’s President Nicolás Maduro has materially improved the country’s outlook, according to Franklin Templeton Fixed Income Emerging Market Debt Director Nicholas Hardingham. He believes this action helps alleviate a long-standing political and economic impasse that had prevented reform, external engagement, and debt resolution.

Several factors point toward potential global growth acceleration in 2026. However, employment weakness poses a meaningful risk. Our experts share what this sideways outlook may mean for the economy, financial markets, and cross-country divergences.

Emerging markets defied expectations in 2025 amid a surprisingly favorable global environment and several historically troubled economies enacting significant structural reforms. Our Franklin Templeton Fixed Income team share their 2026 outlook for emerging market debt and assess whether these positive trends will continue.

Coffee prices hit an all time high in 2025, although tariffs only partially explain the recent increase.

While the overall high yield default rate remains low, liability management exercises eclipsed traditional defaults in early 2024 and now represent the majority of defaults in both high yield and leveraged loans.

On this month’s Talking Markets podcast, we sit down with guests Rick Polsinello from the Franklin Templeton Institute and Ben Barber of Franklin Templeton Fixed Income to discuss the US economy and the municipal bond market in 2026. They cover why they view the economy as resilient, some key investment themes for the year, and the growing opportunity within municipal bonds.

Looking ahead to 2026, Franklin Templeton Fixed Income Municipal Bond Director Ben Barber says there are a few key factors that will likely shape the municipal bond market.

The Franklin Templeton Fixed Income team believes that the US economic outlook at this stage likely doesn't warrant additional monetary easing; however, outside the United States, economic growth still faces some challenges and suggests proceeding with caution. Read more in their latest Sector Views.

The Franklin Templeton Fixed Income team believes, despite increased clarity across both macroeconomic and market conditions, uncertainty remains. Read more in their latest Sector Views.

The Franklin Templeton Fixed Income team feels optimistic about the US economy, driven by consumer spending, which should limit the need for rate cuts by the US Federal Reserve. However, policy changes by President-elect Trump, such as increased tariffs and immigration changes, could add inflationary pressures. Read more in their latest Sector Views.

The Franklin Templeton Fixed Income team believes in a cautious stance on fixed income sectors as most spreads are hovering around 20-year lows, but still prefer high-quality, shorter-maturity assets that have attractive yields. Read more in their latest Sector Views.