Was Post-Fed Chair Speech Rally a Market Overreaction?

Related: Jim Cramer: Markets in ‘One of the Worst Times in a Long Time’ as Yields Rise, Stocks Fall

The Fed Chair’s more dovish tone comes as his colleagues have been signaling to various news outlets that a December rate hike is not as certain as the capital markets may think. In an interview with the Wall Street Journal this month, Federal Reserve Bank of Philadelphia President Patrick Harker was outright convinced that a December rate hike is not the most optimal move given the latest rumblings in the markets.

“At this point, I’m not convinced a December rate move is the right move, but I need to watch the data over the next few weeks before determining whether it is prudent to boost the cost of borrowing again,” said Harker.

While some analysts view the market reaction as excessive, others share the general sentiment exhibited in Wednesday’s rally. CNBC “Mad Money” host Jim Cramer said Powell’s latest comments presented a less hawkish stance from his previous view and that he’s now pumping the brakes on an aggressive rate-hiking policy.

For more trends in fixed income, visit the Rising Rates Channel.