Monetary Matters with Jack Farley Jim Bianco on Division at the Fed and Jerome Powell’s Controversial Decision to Stay
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May 1, 2026 
Jim Bianco, founder of Bianco Research and market analyst, discusses Fed independence and recent dissents. He critiques Jerome Powell’s decision to stay and its political implications. He also covers oil supply risks from the Strait of Hormuz and a market outlook that expects higher oil and interest rates.
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Fed Independence Has Become Individual Voting
- Fed independence is effectively solved by 12 independent voters replacing chairman-led groupthink.
- Jim Bianco notes the FOMC went 8-4 and regional Fed dissents show members now vote on their own views rather than follow the chair.
Powell Refused Deal On Building Investigation
- Jim recounts the Tom Tillis block and the agreement that the Justice Department closed its probe while the Fed inspector general may continue investigating.
- He frames Powell's refusal to accept that deal as holding the Fed 'hostage' to prevent any investigation of building overruns.
Dissents Signal Forward Guidance Shift
- Recent dissents were mainly about removing easing-bias forward guidance, not the decision to hold rates.
- Bianco highlights three regional bank dissents demanding clearer signaling that cuts are not forthcoming this year.