The Julia La Roche Show #282 Jim Bianco: Fed Chair Powell 'Caved' In Jackson Hole, A Rate Cut in September Would Be A Mistake
Aug 22, 2025
Jim Bianco, founder and president of Bianco Research, offers sharp insights into today's economic landscape. He discusses skepticism around anticipated Fed rate cuts, the intricate dance between inflation and interest rates, and their effects on various income groups. Bianco highlights the labor market's challenges due to worker availability and the vital role of immigration. He also explores rising gold prices and innovative ways to generate yields without selling. Amid economic concerns, he shares optimism about AI creating new job opportunities.
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Lowering Rates Can Backfire
- Bianco says current interest rates are about appropriate given asset highs and sticky inflation.
- Lowering rates when the economy doesn't need stimulus will boost prices and force rates higher later.
Inflation Harms The Poor Most
- Bianco stresses inflation destroys economies and disproportionately harms lower-income workers.
- Allowing inflation to persist to benefit asset holders risks societal division and instability.
Pandemic Changed The Economic Cycle
- The pandemic is the biggest economic event of our lifetime and fundamentally changed the economy.
- Zero interest rates and pre-pandemic cycles are over, so policymakers should not assume a return to old norms.