Powell, You Have A Problem: Gold Hits All Time High As Markets Price In Rate Cuts As Soon As March

Ahead of the looming Fed blackout period - which lasts until the Dec 13 FOMC meeting - Powell had once last chance to tame euphoric markets after the best November in the past 40 years... and he blew it. Instead of pushing forcefully against the meltup in risk assets after the biggest easing in financial conditions on record during November...

... the Fed chair appeared largely nonchallant, and in his fireside chat earlier today, what the market focused on was Powell's comment that rates are "well into restrictive territory" which not only assured there would be no more rate hikes, but steamrolled Powell's other, hawkish warning, that it is premature to speculate when the Fed might ease. The result was a collapse in yields, a surge in stocks, bitcoin spiking to new 2023 highs above $38,000, all driven by renewed bets that the Fed will cut rates as soon as March where the market now assigns odds of a rate cut as high as 80%, roughly double from yesterday.