US breakevens - an indicator that measures the market's inflation expectations - have dropped to their lowest level in 2017, signalling investors may have almost run out of patience waiting for the Trump administration to find its feet and begin pushing through its promised business-friendly policy measures.

A cooling of surprisingly strong economic figures out the US in recent months, skepticism the US Federal Reserve will stick to its aggressive rate hike plan and uncertainty around the oil price have dampened confidence in the "reflation trade" - bets the US economy will experience a helpful pick-up in inflation.

Indeed, the failure of the Affordable Care Act repeal has prompted investors to question whether President Donald Trump can stimulate enough growth to boost lagging inflation.

But experts say investors have overreacted to the slow movements emanating from the US administration.

"The three components of the reflation trade - spend more money, tax reform and deregulation haven't gone away," says Mark Wills, head of asset allocation Asia-Pacific at State Street Global Advisors.

"It's pretty unambiguous that we're going to get some of these things done and there's a huge amount of regulations and unnecessary processes they could roll back. And if they do, in 12 months' time, we could see small caps stocks do really, really well."

Markets, now accustomed to managing geopolitical uncertainty, will contend with the results from the first round of the French elections on Monday morning. But US Treasury Secretary Steven Mnuchin's comments last week reiterating the promise of a tax reform plan "very soon" has given the reflation trade new life.

President Trump said on Friday he will reveal a "massive" tax package that will deliver cuts "bigger I believe than any tax cut ever". A tweet on Saturday indicated the package will be announced on Thursday.

Markets have been impatiently eyeing April 29 which marks President Trump's 100th day in office.

Mr Wills points to the $US60 billion ($79.5 billion) worth of deferred oil and gas projects that have been freed up and the rolling back of the Keystone pipeline blockages, as a signal for how serious the administration is of increasing the efficiencies within one of the world's most complicated economies.

"Nothing in US politics happens in a hurry and if you were to start betting against growth in the US economy, you'd be ignoring plenty of positive signs."

Mr Wills suggests the simplest way to play the reflation trade is to buy up value stocks, rather than growth stocks, especially those that look cheap relative to their fundamentals.

"When there's a fair bit of growth around, those stocks won't see much movement," says Mr Wills. "Whereas if you're looking at value plays, they have upside room to move."

Deutsche Bank economists agree the reflation off concept has run too far, warning that inflation isn't just a function of domestic politics.

"Further progress in this direction is not reliant on the passage of new fiscal stimulus measures in the US, and the possibility of a significant overtightening [of the labour market] - again especially in the US - tells us that inflation risks are now very much on the rise again," say the Deutsche Bank economists in a note to clients.

Continuing jobless claims fell to a 17-year low and the unemployment rate has declined to its lowest level since 2007. Though Wednesday's Beige Book reported fatter pay packets had yet to translate into inflation, a build-up in wage growth would eventually break into higher consumer prices, the economists say.

"While much of this resurgence is driven by the rebound in energy and other commodity prices over the past year, labour markets have been tightening impressively despite relatively moderate rates of output growth."