In this clip from today’s edition of The Macro Show, Hedgeye CEO Keith McCullough gives his outlook for what Fed rate hikes entail for the bond market, as well as future rate hike expectations [hint: they won’t be raising expectations...]

"The Fed wants to destroy some demand… When the fixed-rate mortgages go like that [jump up to 5%], there’s less demand – affordability goes down,” explains McCullough.

“You're going to get demand destruction, growth falls faster, bond yields stop going up, the Fed pulls back on rate hike expectations. That’s how I think it’s going to go."

McCullough: The Fed Wants Demand Destruction - HIS Billboard   Guest Lineup S2022