WashingtonWise

Affordability is the political buzzword of the moment, contributing to a widening gap between what consumers and investors think about the economy versus how the economy is actually performing. In this episode, Kevin Gordon, head of macro research and strategy at the Schwab Center for Financial Research, joins host Mike Townsend to discuss how affordability, though difficult to define, is shaping consumer sentiment and policy debates, especially as economic data and public perception diverge. Kevin shares his perspective on the softening jobs market, sticky inflation, the accuracy of government data, the deep divisions at the Federal Reserve, and how tariffs will continue to be a major issue for investors to watch. He also discusses his 2026 Market Outlook, highlighting potential opportunities for investors in the coming year even as concerns increase about the sustainability of the bull market. And Mike shares his thoughts on another looming government shutdown deadline, the battle on Capitol Hill over health care subsidies, and why a Republican victory in a recent special election is signaling that Republicans may be in for a rough ride in next year's midterms. Check out Schwab's 2026 Outlook: U.S. Stocks and Economy.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple PodcastsIMPORTANT DISCLOSURESThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.Past performance is no guarantee of future results.Investing involves risk, including loss of principal.All names and market data shown are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.Small cap investments are subject to greater volatility than those in other asset categories.Indexes are unmanaged, do not incur management fees, costs, and expenses (and/or "transaction fees or other related expenses"), and cannot be invested in directly.  For more information on indexes, please see ​schwab.com/indexdefinitionsThe Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.1225-KM4Z Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The end of the government shutdown brings fresh challenges for investors, including the looming threat of another shutdown. Economic data delays may complicate the Fed's upcoming decisions on rate cuts. Two crucial Supreme Court cases regarding Trump's tariffs and Fed independence are on the horizon. The rising number of Congressional retirements may signal a changing political landscape as we approach the 2025 elections. Lastly, the halt of penny production raises interesting concerns for retailers and banks.

With the Fed cutting rates and the bull market in stocks continuing its run of more than three years, some investors are wondering whether bonds still play an important role in a portfolio. On this episode, host Mike Townsend and guest Collin Martin, managing director and head of fixed income research and strategy at Schwab, discuss why bonds still matter when it comes to providing stability in a diversified portfolio. Collin shares his perspective on how mortgage-backed securities, international bonds, and Treasury Inflation-Protected Securities (TIPS) all merit consideration by fixed income investors. They also do a deep dive into the most recent Fed meeting, including how the Fed is navigating the lack of economic data during the government shutdown, how it is wrestling with contradictory pressures from the jobs market and inflation, and the relationship between the fed funds rate and mortgage rates. Mike also provides updates on the government shutdown and how the Supreme Court is poised for a landmark decision on the president's tariff policy.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.IMPORTANT DISCLOSURESThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.​Past performance is no guarantee of future results.Investing involves risk, including loss of principal.All names and market data shown are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks. Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks, including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk. Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.Mortgage-backed securities (MBS) may be more sensitive to interest rate changes than other fixed income investments. They are subject to extension risk, where borrowers extend the duration of their mortgages as interest rates rise, and prepayment risk, where borrowers pay off their mortgages earlier as interest rates fall. These risks may reduce returns.Treasury Inflation Protected Securities (TIPS) are inflation-linked securities issued by the US Government whose principal value is adjusted periodically in accordance with the rise and fall in the inflation rate. Thus, the dividend amount payable is also impacted by variations in the inflation rate, as it is based upon the principal value of the bond. It may fluctuate up or down. Repayment at maturity is guaranteed by the US Government and may be adjusted for inflation to become the greater of the original face amount at issuance or that face amount plus an adjustment for inflation. Treasury Inflation-Protected Securities are guaranteed by the US Government, but inflation-protected bond funds do not provide such a guarantee.This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.Indexes are unmanaged, do not incur management fees, costs, and expenses (and/or "transaction fees or other related expenses"), and cannot be invested in directly.  For more information on indexes, please see ​schwab.com/indexdefinitionsCurrency trading is speculative, very volatile and not suitable for all investors.The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.1125-6R2W Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Stephanie Shadel, a Senior Wealth Advisor at Charles Schwab, dives into how investors can manage emotions during turbulent markets. She offers strategies for rebalancing portfolios and reviewing cash versus bond allocations. Stephanie tackles the fear of missing out and emphasizes focusing on fundamentals. The discussion covers evolving tax and charitable giving strategies in light of recent legislation. She also provides a practical year-end checklist, ensuring listeners are prepared for smart financial moves before the year's end.

The bull market has been running since April, despite persistent economic and political headwinds, including tariffs, sticky inflation, a weakening jobs outlook, questions about the Fed's independence, and now a government shutdown. On this episode of WashingtonWise, Joe Mazzola, head trading and derivatives strategist at Charles Schwab, joins host Mike Townsend to discuss traders’ perspectives on whether this market can sustain its momentum amid policy and political uncertainty. Joe shares his thoughts on the potential impact of the government shutdown, especially the lack of crucial economic data, on the markets and the Fed’s monetary policy decisions. He shares how traders are thinking about tariffs, the artificial intelligence boom, and the strategic use of cash in a portfolio. And he offers some practical guidance on whether it is time for investors to take some profits and where to look for potential opportunities.Mike also shares updates on what to watch for as lawmakers try to find a path to ending the shutdown, how the Supreme Court is getting set to weigh in on whether the president can fire a Fed governor, and why investors should pay attention to two recent White House personnel decisions. WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.IMPORTANT DISCLOSUREThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.Past performance is no guarantee of future results.All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Investing involves risk, including loss of principal.Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.Currency trading is speculative, very volatile and not suitable for all investors.Technical analysis is not recommended as a sole means of investment research.There is no guarantee that execution of a stop order will be at or near the stop price.Money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of an investment at $1.00 per share, it is possible to lose money by investing in the fund.Cryptocurrency-related products carry a substantial level of risk and are not suitable for all investors. Investments in cryptocurrencies are relatively new, highly speculative, and may be subject to extreme price volatility, illiquidity, and increased risk of loss, including your entire investment in the fund. Spot markets on which cryptocurrencies trade are relatively new and largely unregulated, and therefore, may be more exposed to fraud and security breaches than established, regulated exchanges for other financial assets or instruments. Some cryptocurrency-related products use futures contracts to attempt to duplicate the performance of an investment in cryptocurrency, which may result in unpredictable pricing, higher transaction costs, and performance that fails to track the price of the reference cryptocurrency as intended. Indexes are unmanaged, do not incur management fees, costs, and expenses (and/or "transaction fees or other related expenses"), and cannot be invested in directly.  For more information on indexes, please see ​schwab.com/indexdefinitionsThe Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.1025-TEZW Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Kathy Jones, Chief Fixed Income Strategist at Charles Schwab, joins to unravel the Fed's tightrope walk between battling inflation and fostering job growth. She discusses the unprecedented drama surrounding the Fed meeting, including the political pressures impacting its independence. Kathy delves into the implications of rising fiscal deficits on Treasury yields and foreign demand for U.S. debt. She also shares key insights for bond investors, emphasizing the importance of duration and quality amid current market uncertainty.

The coming weeks will see a series of major policy decisions in Washington that will play out in Congress and in the courts. On this episode, host Mike Townsend explores five key issues that are nearing resolution and discusses how the markets may react. He examines the Federal Reserve's plan to resume cutting interest rates and how the president's attempt to fire a Fed governor means the courts will have to resolve a fundamental question regarding the Fed's long-established independence. Mike also provides updates on the court battle over tariffs and the implications for the economy and the markets. And he addresses the risk of a government shutdown, Congressional action on cryptocurrency regulation, and the market ramifications of the federal government taking an ownership stake in Intel Corp.  WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.IMPORTANT DISCLOSURESThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.Past performance is no guarantee of future results.All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Investing involves risk, including loss of principal.Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.Currency trading is speculative, very volatile and not suitable for all investors.Cryptocurrency-related products carry a substantial level of risk and are not suitable for all investors. Investments in cryptocurrencies are relatively new, highly speculative, and may be subject to extreme price volatility, illiquidity, and increased risk of loss, including your entire investment in the fund. Spot markets on which cryptocurrencies trade are relatively new and largely unregulated, and therefore, may be more exposed to fraud and security breaches than established, regulated exchanges for other financial assets or instruments. Some cryptocurrency-related products use futures contracts to attempt to duplicate the performance of an investment in cryptocurrency, which may result in unpredictable pricing, higher transaction costs, and performance that fails to track the price of the reference cryptocurrency as intended. The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.(0925-CPZ4) Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Michelle Gibley, Director of International Research at the Schwab Center for Financial Research, delves into the turbulent world of U.S. tariffs and their impending impacts. With over 30 years in finance, she explains how recent tariff announcements triggered market jitters and why emerging markets are thriving despite global trade tensions. Their conversation also touches on the Federal Reserve's rate decisions and the legislative landscape concerning cryptocurrency, shedding light on potential investment opportunities amidst these economic shifts.

Nate Peterson, Director of Derivatives Analysis at the Schwab Center for Financial Research, shares his expertise on cryptocurrency as it goes mainstream. He explains the basics of crypto and stablecoins, detailing their potential as a secure payment method. The conversation shifts to the evolving regulatory landscape in Washington, where Congress is moving towards the first major crypto legislation. Nate emphasizes the importance of investor education amid these changes and encourages listeners to stay informed about this rapidly advancing technology.

The discussion centers on the sweeping changes to a massive tax and spending bill and what it means for taxpayers and investors. Key differences between the House and Senate versions raise questions about the future of federal programs like Medicaid. Concerns about rising budget deficits and the national debt linger in the air, while implications for foreign investment and rising bond yields are critically examined. Additionally, the podcast touches on Fresh leadership at the Federal Reserve and upcoming regulatory changes, fueling debates within financial markets.