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Fed Pivot Seen as Bump, Not Dead End for Reflation Trade

  • Natixis calls Friday selloff overreaction to slow tightening
  • Best model could be 2004’s performance: Morgan Stanley
Bloomberg business news
Fed Pivot Opens Market Debate on Inflation, Tapering
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Markets were upended last week after the U.S. Federal Reserve signaled it would begin to dial back the stimulus that has fueled the recovery from the pandemic.

This slammed the brakes on the reflation trade -- bets on stocks that benefit from faster economic growth -- which had been humming along since November’s breakthrough vaccine announcements.