Jim Bianco, a market researcher, warns that all financial assets will be negatively impacted by wild inflation.

Even stock investors may not be able to avoid the turmoil in the bond market.

Jim Bianco, a market researcher, cautions that implementing critical Federal Reserve policies to curb rampant inflation will result in significant losses for Wall Street.

The Bianco Research president stated on CNBC "Fast Money" on Thursday that eventually, this will return and harm all financial assets.

Last year, Bianco became bearish on stocks, citing inflation risks as the main reason. He believes the Fed is responsible for the delay in ending its pandemic-era easy money policies and raising interest rates.

The Federal Reserve's prediction that inflation would remain under control and be temporary has been widely regarded as one of the worst in history, according to Bianco. As a result, they are now faced with an ultra-aggressive policy because they failed to gradually increase interest rates last year.

He worries about the big catch-up’s costs.

Bianco stated that they do not plan to create a hard landing but intend to control prices by reducing inflation. They will achieve this by raising rates until they achieve lower inflation. To accomplish this, they will slow down demand.

The Fed's only solution, as per Bianco, is to rapidly increase interest rates and persuade wealthy individuals to reduce their spending. The bond market has already factored in the central bank's anticipated bold actions.

The bond market understands the severity of the situation," he stated in a recent Twitter post. "This is not just the worst bond market we've experienced in our careers, but it could potentially be the worst of our lifetimes.

Bianco anticipates a 50 basis point increase in interest rates at the next policy meeting on May 3 through May 4, given a 75% probability of inflation within the next two years.

If the stock market wants to go up, maybe they should be talking about 75 instead of 50.

Bianco contends the Fed is aware the stakes are high.

Bianco stated that they are not willing to make a mistake in the opposite direction by being too cautious at the moment. They want to avoid creating a broken market or a recession. However, when one tries to control inflation with such determination, it increases the likelihood of making a mistake.