Jim Bianco: The Fed, Jackson Hole & Rising Rates

New Fed Chair Kevin Warsh delivers his first Jackson Hole keynote on August 28. Ahead of it, host Branden DuCharme talks with macro strategist Jim Bianco (Bianco Research) about why the bond market is rejecting the Fed's current policy — and what it means for interest rates, inflation, and your mortgage.

Since September 2024, the Fed has cut rates six times, yet the 10-year Treasury yield has risen a full percentage point — something Bianco notes hasn't happened in 55 years of data. He explains the difference between "forward guidance" and "reaction function," why he believes we still have an inflation problem, and why unusually low interest rates can damage an economy just as much as high ones.

Recorded as a preview ahead of the Jackson Hole speech, this is Bianco's read on what to watch for.

In this episode:

• Why this Fed operates differently — 12 independent voters, not one chairman
• The fight over Fed independence
• Why long-term rates rise even as the Fed cuts
• Forward guidance vs. reaction function
• What it means for ARMs vs. fixed-rate mortgages
• The "monetary shot clock" and the hidden cost of low rates

Follow Jim Bianco on X: @biancoresearch

Information presented on this program is believed to be factual and up-to-date, but we do not guarantee its accuracy, and it should not be regarded as a complete analysis of the subjects discussed. Discussions and answers to questions do not involve the rendering of personalized investment advice, but are limited to the dissemination of general information. A professional advisor should be consulted before implementing any of the options presented. Encompass More Asset Management LLC is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC) and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements.