Markets continue to digest any Federal Reserve hints about a rate hike following the FOMC meeting Wednesday. Jim Bianco, president of Bianco Research says when markets want the Fed to go, is when the Fed will go.
"The Fed's too afraid of financial market reactions, so it will follow what the market wants," Bianco told CNBC's "Squawk Alley" Thursday. "The markets figured it out."
Dating back to the 80-plus meetings that have taken place since Ben Bernanke was Fed Chair in 2006, Bianco said markets have accurately priced in moves 100 percent of the time.
"If this market doesn't have a Fed hike priced in by the week of Labor Day, it's not going to happen," Bianco said. "Because the market's got a 100 percent track record right now."
Wall Street was expecting a dovish Message Wednesday. In CNBC's most recent Fed survey, Fed watchers have been expecting just one rate hike this year, and most likely in December.
Before the statement, fed funds futures showed roughly 30 percent odds of a rate hike in September and a 48 percent chance by December. The futures were unchanged after the statement, according to Justin Lederer, rates strategist at Cantor Fitzgerald.
"Right now the market is telling you, I don't care what your language was, you're not raising rates this year," Bianco said.
He said when Fed officials called May a "live meeting" but didn't hike, it threatened the credibility of central bank rhetoric.