The Julia La Roche Show #297 Jim Bianco: Markets at All-Time Highs - So Why Is the Fed Cutting Rates?
30 snips
Oct 21, 2025 
Jim Bianco, president of Bianco Research, shares his insights on the perplexing decision of the Fed to cut rates while markets soar. He explains the shocking drop in job creation from 158,000 to 29,000 due to a collapse in immigration and population growth. Bianco warns that lower rates may reignite inflation through rising tariffs and empowered remote workers. He also draws parallels between today's AI stock concentration and the late-90s bubble, cautioning about potential market mispricing due to aggressive retail buying.
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Population Drives Appropriate Job Growth
- Job growth fell from ~158k to ~29k monthly, but population growth collapsed due to near-zero immigration.
- Given that, 25–30k monthly jobs may be sufficient to keep labor market balanced.
Markets At All-Time Highs Raise Policy Risk
- Financial markets are rallying across assets while the dollar lags, creating a broad all-time high backdrop.
- That makes cutting rates risky because stimulating financial gains could reignite inflation.
Don’t Use Rate Cuts To Solve Labor Shortages
- Avoid cutting rates to “fix” employment when population-driven labor supply is the real issue.
- Use targeted policy like legal immigration or worker permits instead of broad rate cuts.