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Is Fed tapering now priced in?

Emerging market assets have suffered since mid-October from renewed speculation that the US Fed will taper its asset purchases sooner rather than later. Both equities and bonds have sold off over the past month, particularly in Latin America. But the prospect of Fed tapering may now be priced in across many EM assets, evidenced by the muted market reaction to better-than-expected US jobs data last Friday.


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