This morning on The Call @ Hedgeye, Macro analyst Josh Steiner and Hedgeye CEO Keith McCullough discussed the market's anticipation of three rate cuts this year—and the potential for the Federal Reserve to extend rate cuts beyond that.
“It was a move that was in line with what happens in #Quad4. It was a move that we front-ran through the lens of Utilities, Gold, long Bonds, etcetera,” said McCullough.
In our estimates, inflation is set to re-accelerate again as we move toward the end of the year. As we approach 2025, will the Fed stop at three rate cuts?
“Before you get into late 2024 and going into Q1 2025, you see a lot of the similar reversal dynamics that played out in the previous year,” explained Steiner. “Remember, we came into ‘24 with the bond market pricing in six rate cuts by April of ’24 that had been cut down to basically zero or one.”
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