Macro Voices MacroVoices #510 Jim Bianco: From FED Cuts, to inflation, to Gen Z’s Infatuation with Socialism
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Dec 11, 2025 
Jim Bianco, Founder of Bianco Research and a leading macroeconomic analyst, joins to dissect recent Fed actions, including a surprising 25 basis point cut. He warns about the implications of a bloated Treasury market and the potential resurgence of bond vigilantes. Discussing inflation, he highlights how aggressive rate cuts might spark public anger and unanchor inflation expectations. Bianco also explores Gen Z's shift toward socialism, driven by affordability concerns and job disruptions from AI, and advocates for increasing housing supply to tackle affordability issues.
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Fed Reserve Purchases May Enable More Deficits
- The Fed is buying $40B of bills monthly to add reserves and ease funding-market tightness.
- Jim Bianco argues this may signal Congress their borrowing is sustainable, encouraging more deficit spending.
Repo Tightness Could Be A Red Flag, Not A Fix
- Funding-market tightness might be a signal that the Treasury market is too large, not that funding markets are too small.
- Expanding funding could encourage continued big deficits and higher future inflation.
Split Fed Vote Reveals Political Risk
- The Fed vote was 9-3 with both hawkish and dovish dissents, showing internal division.
- Jim says a stronger dissent now would have signaled resistance to future politicized chair picks.
