Skip to content

Bianco Sees Stocks, Corporate Bonds Hit by Fed Stimulus Unwind

  • Central bank exit costs some markets a ‘$1.5 trillion buyer’
  • Inflation scare increases risk that Fed ‘going to go too far’
Bloomberg business news
WATCH: Jim Bianco, founder at Bianco Research, discusses the Fed’s impact on bond and equity markets.Source: Bloomberg

The fastest inflation in almost 40 years is pushing the Federal Reserve to act fast, and financial markets are signaling the central bank will tighten policy furiously, spurring losses in many asset classes, said Jim Bianco.

The spike in Treasury yields this year has “been a huge move and a tremendous total return loss,” the founder of Bianco Research told Bloomberg Television’s Surveillance on Wednesday. While anticipated higher rates are hurting financial assets, the Fed’s pledge to stop its pandemic-era bond-buying program will really deliver a blow, he added.