U.S. May Be Settling Into an Era of Persistent Inflation, Strategist Warns
Jim Bianco, head of Bianco Research, believes the U.S. economy has transitioned into a new inflationary chapter—one that could be here to stay.
In a recent interview, he explained why he sees the current climate as fundamentally different from the pre-2020 era.
Bianco highlighted recent remarks from Treasury Secretary Scott Bessent, who questioned the logic of issuing long-term debt at today’s interest rates. To Bianco, this isn’t a sign of dysfunction in the bond market—it’s a reflection of shifting economic conditions.
According to the strategist, inflation has structurally changed since the pandemic, and it’s unlikely to return to the Fed’s preferred 2% target anytime soon. Instead, Bianco argues, core inflation could hover in the 3–4% range going forward. This implies a normalization of interest rates around 5%, reshaping expectations for borrowers, investors, and policymakers alike.
He cautioned that while this doesn’t spell runaway inflation, it does signal the end of the low-rate era. The broader risk, he suggested, lies in markets and institutions adjusting too slowly to this elevated baseline.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
