Thoughtful Money with Adam Taggart The Fed Is Making A Big Mistake - Get Ready For More Inflation | Jim Bianco
23 snips
Dec 30, 2025 
Jim Bianco, President and Macro Strategist at Bianco Research, joins to discuss the complex economic landscape ahead. He warns that Fed mistakes could reignite inflation as job needs shrink due to immigration shifts. Bianco contrasts wage stagnation with rising prices, emphasizing persistent affordability issues. He highlights the unequal spending power of the top 10% and discusses the long-term implications of AI on job markets. The conversation dives into the intricacies of inflation dynamics, government spending, and strategies for navigating the economic future.
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Population Cuts The Jobs Target
- US job needs fell sharply if population growth is negative, so low payroll numbers may be acceptable.
- Jim Bianco argues the Fed may be cutting rates based on misread labor data and shrinking population.
Inflation Likely To Stay Around 3%
- Jim Bianco expects multi-year sticky inflation around the low-to-mid 3% range, not a rapid return to 2%.
- He says current interest rates sit about 80–100 bps below neutral and will be stimulative.
Government Spending Fuels Inflation
- Fiscal spending remains large and acts as a persistent inflationary bid in the economy.
- Bianco warns government spending near crisis levels (≈23% GDP) keeps prices elevated.
