Carnage is epic in bonds due to Fed’s inflation error: Jim Bianco


There may be no escape from the bond market turmoil — even for stock investors.

Market researcher Jim Bianco warns critical Federal Reserve policies to control wild inflation will inflict widespread losses on Wall Street.

“Eventually, this is going to come back and hurt all financial assets,” the Bianco Research president told CNBC “Fast Money” on Thursday.

Bianco turned bearish on stocks late last year, primarily due to inflation risks. He blames the Fed for waiting too long to end its pandemic easy money policies and lift interest rates.

“The call last year that inflation would be well-contained and transitory is arguably one of the worst forecasts in Federal Reserve history,” said Bianco. “They are now stuck with this ultra-aggressive policy because they didn’t start raising rates at a very leisurely pace a year ago.”

He worries about the big catch-up’s costs.

“They don’t intend on creating a hard landing. But what they do intend on doing is reining in…

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