Templeton’s Mobius on the Fed, EMs and China (Weekly Q&A Feature)
Mark Mobius, executive chairman of Templeton Emerging Markets Group, spoke to Scott Johnson about Operation Twist, privatization in emerging markets and the path of Chinese stimulus.
Q: Should the Fed have done more than extend Operation Twist?
A: No, I think they’re just feeling their way. You must remember that Bernanke has never really taken his foot off the pedal. He is determined to continue to feed the market and do anything it takes to make sure inflation and unemployment don’t go out of line. That’s the key overriding parameter you have to look at. But you must not forget that the timing was very, very significant given what was happening in Europe and the meetings they were having with the Europeans, where they basically told the Europeans, “Look, we’re doing our part, and now you have to step up to the table.” It was not only about the U.S. but it was about Europe.