A multi-decade high of 5.5% is predicted for the 10-year Treasury yield by market forecaster Jim Bianco.

It’s a level not seen since George W. Bush was president.

This year, the benchmark yield is predicted to reach 5.5%, which is its highest point since May 2001, according to Wall Street forecaster Jim Bianco.

The economy's strength and resiliency form a significant component of his thesis.

According to the Bianco Research president, who appeared on CNBC's "Fast Money" on Wednesday, 5% interest rates do not negatively impact the economy. The president believes that the economy can handle rates as high as 7%, but mortgages may be affected. The president maintains that there is no need to worry about the economy's health due to these rates.

As inflation bottoms out at 3% and demand remains stable, yields are expected to rebound.

"The 10-year yield should approximate the nominal GDP yield, which is 5.5%," he stated.

As early as summer, Bianco predicts that the rate on the 10-year Treasury will reach 5.5%. He accurately forecasted last fall's yield increase above 5%.

The Federal Reserve's potential cutting of interest rates three times this year is included in his latest forecast.

Although the Fed may not cut rates as aggressively as expected, it does not mean they won't cut rates at all. Bianco, who predicted higher inflation in late 2020, warned on CNBC that this could be the first time in a generation.

As of Wednesday’s market close, the was yielding 3.9%.