Lula Default Scare Echoed in Worst Rout Since ’02

Lula Default Scare Echoed in Worst Rout Since ’02

Dado Galdieri/Bloomberg

Brazil is now grappling with inflation above its 6.5 percent target, the prospect of a credit downgrade and the biggest street protests in more than two decades as speculation increases the Federal Reserve will reduce its unprecedented bond buying that had pushed investors into higher-yielding emerging markets.