Home / Deeper Thought / Are central banks already taking a victory lap?

Are central banks already taking a victory lap?

Franklin Templeton Fixed Income team believes growth projections for the United States will continue to improve as a “soft landing” becomes the most likely outcome, while other economies may face harsher conditions. 
Deeper Thought

Sonal Desai, Chief Investment Officer, Franklin Templeton Fixed Income notes “Our growth projections for the United States continue to improve as a “soft landing” becomes the most likely outcome, while other economies may face harsher conditions. US and European central banks appear to have reached the peaks of their hiking cycles, but we believe it is still too soon to declare victory against inflation. A core tenet of our macro view is central banks will need to maintain rates at higher levels than the market anticipates, which will keep pressure on yields across the curves.

“We are still cautious about taking broad-based risks as spreads are currently not pricing in any potential downside; however, all-in yields remain at historically high levels, making them appear attractive to us. We are finding pockets of value across several sectors and are focusing on security selection.

Investor Strategy News


  • Related
    Does tax deductibility increase retirement saving?

    French tax reform boosted retirement savings, with higher-income, older workers contributing more after the 2019 Loi Pacte introduced pre-tax incentives, according to an Amundi white paper analysing 1.4 million workers.

    Investor Strategy News | 14th Mar 2025 | More
    What Trump 2.0 means for the economy and markets

    With uncertainty looming from Trump tariffs to the impact of DeepSeek on AI, Amundi is focussing on global equity opportunities, diversifying with gold and maintaining a tactical approach to duration.

    Lachlan Maddock | 13th Feb 2025 | More
    Optimising portfolio returns with new investing models

    Since the emergence of “Modern Portfolio Theory” and the “Capital Asset Pricing Model” in the late 1960s, institutional investors have taken a quantitatively driven approach to portfolio construction, looking to create portfolio diversification and obtain better risk-adjusted returns by balancing their asset-class exposures. This journey has seen several important advancements in thinking about how to optimally achieve desired results.

    Staff Writer | 22nd Nov 2024 | More
    Popular