In this clip from today’s edition of The Macro Show, Hedgeye CEO Keith McCullough breaks down his January 2022 call for the Fed only be able to hike rates twice before pivoting to a dovish stance, and how he’s making money on falling rates with his long bond positions.
“2 Rate Hikes have been priced out by the market in the last 48 hours. And I’ve said they won’t even be able to get away with raising rates twice.”
“I know exactly why I’m making money in short-term notes today; and I expect to make more money as soon as the Fed raises rates into the #Quad4 conditions. Because then you’re going to go from 4.5 rate hikes (which is what we’re down to), to 3, then guess what? Mucker might be right… they raise rates. Oh! Now the market can only handle three [hikes], then it’s 2, and that was it. See how quickly that can change?
McCullough’s Rate Hike Call on 1/25/22:
Hedgeye CEO Keith McCullough: Powell has to get [rate hike expectations] down to 2, and then 1 and done. That’s according to me; I’m the one with the #Quad4 call, I’m the one who knocks.”
CLICK HERE to watch the full clip
