GLOBAL MACRO SHIFTS

The Fed’s Long Unwinding Road

with Michael Hasenstab, Ph.D.

Quantitative easing (QE) by the US Federal Reserve (Fed) has played an influential role in global financial markets over the past decade. In September this year, the Fed confirmed plans to begin unwinding its QE holdings in October. Yet asset prices have generally been unaffected by the news, reflecting a sense of complacency. Templeton Global Macro believes risks and challenges are ahead on the Fed’s road to policy normalization, with three factors that have potential to push bond yields higher than market expectations.

The Elephant in the Room

What lies ahead on the Fed’s road to policy normalization? Dr. Hasenstab discusses what he thinks the market is missing.

Economic and Market Implications of the Great Unwinding

What does the Fed’s quantitative tightening mean to investors? Dr. Hasenstab breaks down the forces that he thinks will likely take inflation and US Treasury yields to new highs.

Topic Paper

Templeton Global Macro, led by Dr. Michael Hasenstab, discusses the economic and market implications of the US Fed’s balance sheet normalization.

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What's New

Fed risks massive hangover as it begins 'great unwind'

Dr. Michael Hasenstab recently wrote a brief article for the Financial Times where he discusses what consequences may be ahead as the Fed begins unwinding its balance sheet.