A subscriber asked Keith McCullough how a stronger-than-expected Q1 GDP print would affect Hedgeye’s GDP forecast for the rest of the year.
“The GDP print ups the probability of a big surprise to the downside (three months from now),” explains Hedgeye’s CEO in this clip from The Macro Show. “But in the meantime, because the inflation component was up, it also ups the probability that the Fed stays tighter throughout the slowing period.”
“I’ve been saying for 16 months, the Fed’s tightening into a slowdown. When you tighten into a #Quad4 slowdown, that’s when the most risk you’re going to find in markets happens. It’s staring you right there in the face.”
Watch the full clip above.
