Economy Is Thriving but Fed Not Ready to Let Go

<p>Last week saw more signs that the economy is thriving, with a blowout jobs report and continued wage growth, while the Fed increased the interest rate and signaled an extended fight against inflation. Kathy Jones, Schwab’s chief fixed income strategist, joins host Mike Townsend to dig into these mixed messages and what they mean for the bond markets. They discuss whether the Fed can avoid a recession and bring the economy in for a “soft landing.” Kathy also weighs in on why she thinks “bonds are back” and whether that means the traditional 60/40 portfolio is back as well. And she gives her take on municipal bonds and where the dollar is headed.</p><p>Also, Mike provides the latest on the debt ceiling standoff following the first face-to-face meeting between the president and the House speaker on the issue. And he discusses the agenda for the key committees on Capitol Hill that oversee the markets, including plans to examine cryptocurrency and environmental, social, and governance focused (ESG) investing.</p><p><i>WashingtonWise </i>is an original podcast for investors from <a href="https://www.schwab.com">Charles Schwab</a>. For more on the series, visit <a href="https://www.schwab.com/washingtonwise">Schwab.com/WashingtonWise</a>.</p><p><strong>Important Disclosures</strong></p><p>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.</p><p>The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here 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 decision. </p><p>All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered rel