Franklin Templeton: Even under loose fiscal policy, US bond yields may still fall

Jinshi data on July 24th, although the White House dispute is currently changing, Franklin Templeton has studied the impact of the Trump camp sweeping Congress and the White House on bonds. Stephen Dover, Chief Market Analyst and Head of Franklin Templeton Research Institute, said that in terms of fiscal policy, the Republican agenda or public statements do not have any clear plans to cut government spending, let alone increase taxes. However, this does not necessarily mean that loose fiscal policy will definitely lead to a rise in US bond yields. If inflation continues to decline and the US economy slows down due to the lagging effect of the Fed's tightening policy, even if the US federal government does nothing to solve the huge deficit problem, bond yields may also fall.