Bond Market Shows U.S. Is Leading in Race to Reflate Economy
- Brighter U.S. inflation outlook is at odds with Europe, Japan
- Fed’s new target of 2% average price gains in traders’ focus
This article is for subscribers only.
The U.S. is emerging as an early favorite in the all-out showdown to rekindle inflation in the world’s major economies.
With the Federal Reserve planning to hold interest rates near zero until at least 2023 and Congress working on another fiscal boost, a pocket of the debt market is starting to see consumer prices modestly over 2% in years to come. That’s in stark contrast to Europe where deflation fears have reawakened, and Japan, which has battled moribund price pressures for decades to no avail.