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Jim Bianco: Fed is letting inmates run the asylum

CNBC's Rick Santelli and Jim Bianco, president of Bianco Research, discussed how investors have figured out they can control the Federal Reserve's actions as the central bank won't move if asset prices are falling.

"Inmates are running the asylum. And the inmates have figured out now if they don't price it in [a rate hike], the Fed's too afraid of bad financial markets ... so they won't move," Bianco said.

He added, "Brexit might have been the single most bullish thing to happen this summer because it caused central banks to panic, when they didn't need to panic. It caused central banks to throw more money at the markets."

This full interview is exclusive for CNBC PRO subscribers.