by Coin World
AInvest
Macro strategist Jim Bianco has expressed his belief that the US is currently experiencing an “elevated inflation era.” In a recent interview, Bianco, the president of Bianco Research, highlighted comments made by US Treasury Secretary Scott Bessent. Bessent stated that he would not issue long-term bonds given the current interest rates set by the Federal Reserve.
Bessent’s reasoning was that the current rates are significantly higher than the long-term average, making it an unfavorable time to issue such bonds. He suggested that the optimal time for issuing long-term bonds would have been in 2021 or 2022. Bianco, however, interprets Bessent’s comments as an indication of a deeper issue within the bond market. According to Bianco, the current rates are simply a reflection of the new economic environment rather than a market anomaly.