Mark Mobius of Templeton Management Says Fed Should Cut Rates to 1%

Here's an example of an investment expert getting way ahead of himself. Mark Mobius, who oversees about $40 billion in emerging- market stocks as executive chairman at Templeton Asset Management Ltd. in Singapore thinks falling oil prices make it the right time for the Fed to drop rates.

"With oil prices beginning to soften, there may be a chance for them to give a boost to the economy by lowering rates again."

Hmmm, sounds like a pretty risky gamble to me. Lower rates, further kill the dollar, and reinflate the economy and create some new bubbles. Sure, it would be great for the stock market for a bit but long term I don't think the answer lies in low rates. If oil comes down, inflation may remain in check and allow the Fed to keep rates at 2% for some time but I think the long-term direction of the Fed is up, not down.