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Is the Fed Worried About Over-tightening? | 3:00 on Markets & Money

(12/1/22) Fed Chairman Jerome Powell Wednesday implied concern about over-tightening the economy, a very different tack than was expressed just a month ago, when he said he WASN'T worried about over-tightening because the Fed had "tools to solve that problem." What's changed? Employment is showing signs of weakening, manufacturing is showing signs of slowing, so NOW he's worried about over-tightening. That's all market bulls needed to hear to surge 3.1%. But to put that into perspective, we rallied 5.5% following the release of October CPI on anticipation the Fed would slow the pace of its rate increases. But that's not what Powell said: The Fed may need to hike even more next year, raising the potential for a terminal rate of over 5%. Markets didn't hear that, however. Markets are getting a bit over-bought, the MACD Buy-signal is still in place, and markets have gotten above the 200-DMA. But with markets over-bought, it may be a little late to be chasing them; be careful!

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Lance Roberts
Finally, financial news that makes sense. Lance Roberts, the host of "StreetTalkLive", has a unique ability to bring the complex world of economics, investing and personal financial wealth building to you in simple, easy and informative ways but also makes it entertaining to listen to at the same time.
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