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Markets Still Doubt Fed Rate Hike Plans, Franklin’s Desai Says

Stocks are falling and bond yields are rising, but markets still don’t seem convinced the Federal Reserve will pursue plans to keep increasing interest rates until inflation is under control, said Sonal Desai, chief investment officer for fixed income at Franklin Templeton Cos. 

“The Fed lacks credibility,” Desai said on Bloomberg Television’s “Wall Street Week” on Friday. “Markets don’t believe that the Fed is going to do what the Fed keeps saying it’s going to do.”