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  • Fed’s Next Move Probably Should Be a Hike, Says Jim Bianco

Fed’s Next Move Probably Should Be a Hike, Says Jim Bianco

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Bloomberg 21:17 · 2268 Views

Jim Bianco, president and macro strategist at Bianco Research, says the Federal Reserve is “coming up with an answer that is satisfying nobody,” as he considers what the central bank’s next move should be on interest rates.

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Transcript

  • 00:00 Jim, what do you think the next move is
  • 00:02 beyond no move?
  • 00:03 Is it a cut or a hike?
  • 00:05 I think the next move, you're right, is first of all, it should be no move.
  • 00:09 Even though Chairman Powell talked about a pause, meaning that there's going to be moves in the future.
  • 00:14 It probably should be a hike because if we're talking about
  • 00:18 where neutral is, where is the rate that does not, you know,
  • 00:21 restrain or stimulate the economy.
  • 00:24 You can make the case we arrived at it yesterday and that the amount of restraint, as Chairman Powell calls it,
  • 00:30 doesn't really exist.
  • 00:31 So therefore, the next move
  • 00:33 should probably be a hike.
  • 00:35 But that's going to be intensely political.
  • 00:38 President Trump wants to fire Paul.
  • 00:40 President Trump would go crazy if he saw the Fed raise rates.
  • 00:44 So they're trying to thread this needle
  • 00:47 from a political standpoint, in my opinion,
  • 00:49 and they're coming up with an answer that is satisfying nobody.