The Fed is set on a rate-raising trajectory, largely because of burgeoning inflation. Jim Bianco with Bianco Research, who recently held a conference call titled Regime Shifts Are Not Pretty, takes a look at how the transition from a deflationary environment to an inflationary one is throwing a monkey wrench in expectations about the economy. Q1 hedge fund letters, conference, scoops etc, Also read Lear Capital: Financial Products You Should Avoid? When it comes to the relationship that interest rates have to risk markets, the perception for a long time was that higher rates are bad for the stock market.