Titans of Bond Trading Say Ignore Fiscal Stimulus at Your Peril

  • Calls for fiscal stimulus spur renewed bets on inflation gains
  • Pimco, Pioneer position for spending-fueled economic growth

The Return of Inflation and the Bond Market

There have been so many false alarms warning of inflation’s imminent return over the past decade that it’s hard to keep track. There was the initial unease after the Federal Reserve cut interest rates to zero, and another scare when it started buying up massive quantities of bonds. And then there’s the time the European Central Bank drove its benchmark rate into negative territory.

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