Another FED Error As Powell Won't Cut Rates? with Jim Bianco

On this episode of the WTFinance podcast I had the pleasure to welcome back Jim Bianco. Jim Bianco is President and Index Manager at Bianco Advisors. He is also the President of @BiancoResearch.

During our conversation we covered an array of topics, including Jim's outlook on the economy, what actions Powell is likely to take, why the economy is strong but people are struggling, what no interest cuts would have on the markets and how he has positioned himself. I hope you enjoy!

0:00 - Introduction

1:47 - Economy and markets in next 6/12 months

4:00 - What would it take for Powell to cut?

6:38 - What impact does liquidity have on the FED’s actions?

9:20 - How does election provide Powell with less options?

12:55 - What are the main drivers of US economic strength?

18:38 - Economy is strong, but average person is struggling. Why?

21:30 - Boomers continuing to spend

25:05 - What trends will be driving continue economic strength?

28:30 - Onshoring in the US

30:13 - What impact would no change in interest rates have on stock market?

35:55 - Powell hedging his bets?

37:05 - What happens if Powell cuts?

39:40 - Could 3% inflation and 5% interest rates be ok?

42:08 - Fixed vs variable mortgages

43:25 - How will you position yourself?

47:00 - One message to takeaway from our conversation?

Jim Bianco is President and Index Manager at Bianco Research Advisors. He is also the President of Bianco Research LLC. Since 1990, Jim’s commentaries have offered a unique perspective on the global economy and financial markets. Unencumbered by the biases of traditional Wall Street research, Jim has built a decades long reputation for objective, incisive commentary that challenges consensus thinking.

Jim appears regularly on CNBC, Bloomberg, and Fox Business, and is often featured in the Wall Street Journal, Bloomberg News, Grants Interest Rate Observer, and MarketWatch. Jim has a Bachelor of Science degree in Finance from Marquette University (1984) and an MBA from Fordham University (1989).