Six Issues That Could Move Markets in 2026

26 snips

Jan 15, 2026

The discussion dives into how politics and policy will shape markets in 2026. Topics include concerns over Federal Reserve independence and the implications of a DOJ inquiry into its leadership. Geopolitical risks, especially involving Venezuela, are explored alongside key Supreme Court cases that could affect tariffs and Fed appointments. The podcast highlights impending congressional battles over health care, government funding, and cryptocurrency regulation. Insights on regulatory changes and midterm election impacts provide a comprehensive overview for investors.

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INSIGHT

Index Gains Mask Deep Market Churn

Major index gains in 2025 hid deep volatility and wide divergence among individual stocks.
Surface-level index performance can mask significant underlying churn that raises investor anxiety.

INSIGHT

Fed Independence Under Political Pressure

A criminal probe into Fed Chair Jerome Powell raises questions about central bank independence.
Threats to Fed independence could push long-term yields higher, steepen the curve, and weaken the dollar.

ADVICE

Focus On The FOMC, Not Just The Chair

Watch FOMC dynamics, not just the chair, because policy is set by committee votes.
Track the January 27–28 meeting and Fed futures to gauge near-term rate guidance.

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Policy and politics are likely to have an outsized impact on the markets in 2026 as the administration, Congress, and the courts seek to shape the policy landscape in advance of the midterm elections. In this episode of WashingtonWise, host Mike Townsend focuses on six issues that could directly impact investors in the year ahead, including Federal Reserve independence, geopolitical events like the U.S. military operation in Venezuela, and key debates in Congress around health care policy, government funding, and cryptocurrency regulation. And he discusses the impact to investors' portfolios and the markets in general that proposed rules from regulatory agencies like the SEC, CFTC, and Labor Department could bring. With additional insights on pivotal Supreme Court cases and the implications of the upcoming midterm elections, Mike emphasizes the podcast's mission to help investors cut through political and economic noise, providing clear, fact-based analysis to better understand what truly matters for markets and your investments.

WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit schwab.com/WashingtonWise.

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The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

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