This is CBS I on the world with John Bachelor.

Here's John Bachelor.

The American economy at Christmas at New Year.

I welcome Elizabeth Peek of the Hill,

a communist of Fox News, a columnist Liz.

A funny thing happened on the way to higher interest rates. The Federal Reserve and its

speakers reversed themselves, that is one opinion, and said, rather than more hikes in December or the new year, there will be cuts and they've even

named the number. Three cuts is one remark and then there was hesitation and then there was redoubling of these remarks because we don't want to over tighten.

So what I find now, Liz, is that a week later, with the smoke clearing a little bit. What is the collective opinion on the

street? Are we exhausted by all this changing opinion or is this the Federal Reserve confused?

Good evening to you.

Good evening, John.

Well, I think investors are confused, but they're also elated and they're not keeping

that, letting that confusion keep them from buying stocks.

stocks continue to go up it's been an extraordinary rally a very narrowly based rally to be sure but it's a pretty remarkable thing the Fed did in the sense that in two weeks they went from saying well

rate cuts really aren't even on the horizon we aren't really even considering

that to pence thing in three rate cuts for next year not as many as by the way

as now investors are assuming now some people have them have the fed cutting rates

eight times next year.

I mean, yeah, wow, eight.

That's the outlier, but the consensus, I'm guessing, is around six.

You know, so really what happened in those two weeks? I mean people have

...