In this clip from today’s edition of The Macro Show, Hedgeye CEO Keith McCullough discusses the key implications of January’s jobs report—in particular, where monetary policy is headed (and what that means for your portfolio).
“The jobs report effectively ices the cake on the Fed making a policy mistake.
They’re rear-view looking; they’re going to look back and see all the revisions. The November [Non-Farm Payrolls] numbers (where the economy actually peaked, from a monthly Quad perspective) was revised to +647K from 249K, so a huge revision there…
The Fed now wants to try hiking almost 5 times in 2022 into a Deepening #Quad4, and the market agrees with me on that.”
“There’s a huge problem at the White House, politically, with $91 Oil and a 7-handle on inflation. So the Fed is going to do it; they’re the catalyst to implode your portfolio if you’re not protected.”
