Financial conditions eased in November at the fastest pace in 4 decades. That could be a problem for markets and the Fed.

Practically everything rallied in November, with U.S. stocks seeing their best month since the summer 2022, while bonds clinched their best month since the 1980s.

But in markets as in life, sometimes too much of a good thing isn’t good. Case in point: the huge easing in financial conditions in November has raised concerns about the outlook for Federal Reserve interest-rate cuts. Some are worried that, if this should continue, the central bank might not be able to cut interest rates as quickly as investors expect.