AI in 2026: The Growth + Productivity Shock Coming to Markets w/ Jim Bianco

Summary

In this Milk Road Macro clip, Jim Bianco argues the Big Beautiful Bill's tax cuts and stimulus will keep the economy strong but also keep inflation sticky and interest rates elevated, without fixing the K-shaped economy. He says asset owners, especially the top 10%, are driving spending and GDP while non-asset owners struggle. On the Fed, Bianco expects Powell to cut rates despite weak job growth, and he warns that a new Trump-appointed chair may want aggressive cuts but could lack the FOMC votes to deliver them. The clip ends before he answers a portfolio allocation question.

• Jim Bianco expects the Big Beautiful Bill to deliver higher tax refunds and economic stimulus.
• He says the stimulus will keep inflation sticky and interest rates up rather than fix the K-shaped economy.
• The top 10% of households own roughly 90% of assets and drive half of retail sales, leaving non-asset owners behind.
• Bianco sees Powell as reluctant to accept structurally low job growth but likely to cut rates because of political and public pressure.
• A new Fed chair after May could be dovish, but FOMC vote counts may prevent aggressive rate cuts.
• Bianco favors more dissents and less chairman-led groupthink at the Fed.
• The clip ends before Bianco gives portfolio allocation advice, and it does not include the AI stock discussion from the title.