Franklin Templeton: Fed's divergent views on 2026 policy may exacerbate market volatility

According to Odaily Planet Daily, Franklin Templeton portfolio manager Jack McIntyre stated that there is a significant divergence in the Federal Reserve's policy views for 2026, which may mean more volatility in financial markets next year. He pointed out that this rate cut is a risk-management operation, indicating that the Fed is paying more attention to the sluggish labor market. "Given the lag in the effectiveness of monetary policy and the fact that labor market statistics are lagging economic indicators, it is reasonable for the market to expect more rate cuts," McIntyre added. Investment strategist Larry Hatheway believes that although the market has priced in the expectation of significant Fed easing, the challenge facing investors is that the Fed is not yet willing to recognize the market's expected low interest rate path in the future. (Jinshi)