In this clip from today’s edition of The Macro Show, Hedgeye CEO Keith McCullough describes the disinflationary vs. deflationary outcomes that depend on how hawkish the Fed is from here on out.
“If the Fed does what the minutes implied yesterday and raises rates 4 times, I think the 10-year yield can go from 1.75% to 0.75%; that’s 100 bps lower. The catalyst for disinflation is a Fed rate hike. The catalyst for deflation is 4 interest rate hikes.
“This isn’t about getting the first 3 minutes of today right; it’s about getting the biggest part of what we do right – the Cycle.”