Monetary Matters with Jack Farley The Fed's Rate Cutting Cycle Is Already Over | Jim Bianco on March Fed Meeting, Trump Tariffs, and 4/5/6 Markets
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Mar 20, 2025 
Jim Bianco, a financial expert from Bianco Research, discusses the recent Federal Reserve meeting and its implications for the economy. He shares insights on how Trump's tariffs might not trigger a recession and critiques government spending and its impact on economic stability. Bianco examines the current market dynamics, emphasizing the challenges posed by rising interest costs and the need for active bond management. He also contrasts the outlook for U.S. markets with Europe and China, shedding light on the potential for recovery despite low GDP growth forecasts.
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Rate Cutting Cycle Ended
- The Federal Reserve downgraded the economy and raised inflation expectations, yet kept interest rate projections steady.
- Jim Bianco believes this signals the end of the rate-cutting cycle, begun in September.
Powell's Partisan Bias?
- Jim Bianco found Federal Reserve Chair Powell's commentary to be overly focused on blaming Trump for economic uncertainty.
- He felt Powell implied that everything was fine before Trump's policies.
Trump's Tariff Strategy
- Trump's transactional approach to tariffs aims to address economic imbalances caused by globalization.
- He uses tariffs as leverage, not permanent revenue tools, unlike how the Fed models them.