Why the Fed is Missing the Mark on Resilient Inflation

In the Media — June 10, 2026

Bloomberg By Gus Handler

Jim Bianco argues that structural post-pandemic changes—such as structural shift toward working from home, de-globalization, and a notable rise in global conflicts—have transformed the economic landscape, making higher inflation the new baseline.

He cautions that the Federal Reserve remains overly optimistic with an outdated 2% target, potentially forcing the central bank to keep interest rates elevated for much longer than the market expects. The panel also contrasts these ongoing inflationary pressures across the farm and consumer sectors while occasionally shifting into lighthearted basketball banter regarding the Knicks and Spurs.

Chapters
00:00 – Pressure Cookers: Comparing the 2016 Cubs and Today’s Knicks
01:52 – Resilient Inflation Above the 4% Threshold
02:55 – Shifting Paradigms: What is Driving the New Inflationary Environment?
03:49 – The Surge in Farm Production Costs and Alternative Revenues
04:47 – Structural De-globalization and the Federal Reserve’s 2% Delusion
05:42 – Evaluating the Chances of an Interest Rate Hike Before Year-End
06:26 – The Nuances of Fair Value Rates vs. Equity Market Realities
07:41 – Knicks in 7? Final Predictions and Wrap-Up