Divided Fed Officials Hold Rates; Powell to Stay as Governor

Watch on YouTube ↗  |  April 29, 2026 at 20:56  |  20:45  |  Bloomberg Markets
Speakers
Jim Bianco — President, Bianco Research
Jeffrey Rosenberg — Senior Portfolio Manager, BlackRock
Tom Keene — Host, Bloomberg Surveillance

Summary

Federal Reserve officials left rates unchanged with an 8-4 vote, revealing deep division over the easing bias amid uncertainty from the Middle East conflict. Oil prices surged above $120, with the forward curve suggesting sustained highs through year-end, complicating Fed policy. Chairman Powell confirmed he will stay as governor, citing threats to Fed independence. Market implications include front-end Treasury value and long-end avoidance.

  • Fed held rates steady, with four dissents, the most since 1992.
  • Three dissenters wanted to remove the easing bias from the statement.
  • Powell said he will remain as a Fed governor, citing concerns over institutional attacks.
  • Brent crude broke above $120, up 8% on the session, for an eighth consecutive gain.
  • The December Brent contract made new all-time highs, signaling elevated prices through year-end.
  • Jim Bianco warned high oil will keep inflation sticky and prevent Fed easing.
  • Jeffrey Rosenberg saw value in front-end Treasuries but cautioned on long-end due to term premium.
  • Equities were largely unchanged despite big commodity and bond moves.
Trade Ideas
Jim Bianco President, Bianco Research 11:02
Oil stays elevated through year end
The December Brent crude contract is making new all-time highs, indicating that oil prices will stay elevated at least through the end of the year due to no resolution in the Middle East conflict, which will keep inflationary pressure on the Fed and make easing problematic.
BNO HIGH
Jeffrey Rosenberg Senior Portfolio Manager, BlackRock 18:54
Front-end Treasuries offer value
The move in the front end of the Treasury curve is creating some value, particularly at the 5-year maturity, because incoming Fed Chair Warsh has signaled a more dovish interpretation of inflation, but this is conditional on the pass-through from headline to core inflation; there is a little bit of value to be had in short-term Treasuries.
5-year Treasury MED
Jeffrey Rosenberg Senior Portfolio Manager, BlackRock 19:28
Avoid long-term Treasuries now
The long end of the Treasury curve is less of a buying opportunity because the savings glut is turning into a savings deficit, fiscal deficits are increasing demand for borrowing, and term premium needs to rise to attract investors, so long-term Treasuries should be avoided for now.
TLT MED
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This Bloomberg Markets video, published April 29, 2026, features Jim Bianco, Jeffrey Rosenberg discussing BNO, 5-year Treasury, TLT. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Jim Bianco, Jeffrey Rosenberg  · Tickers: BNO, 5-year Treasury, TLT