Strategists Keep Faith in Stocks, View Fed-Hike Bets as Overdone
- Mizuho sees $540 billion of liquidity aiding assets amid taper
- T. Rowe warns of volatility if Fed more assertive on inflation
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Markets are bracing for a pivotal Federal Reserve meeting that’s expected to lay out a roadmap for tapering pandemic-era stimulus and perhaps provide clues about the timing of a liftoff in interest rates.
The prospect of rising borrowing costs to fight inflation has roiled bonds and flattened the Treasury yield curve, suggesting a slower economic recovery lies ahead. But global stocks are near record highs, cushioned by solid company profits.