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.
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
