Can the Fed Win the Inflation Battle?

April 28, 2022
Liz Ann Sonders joins the podcast to discuss the Fed's aggressive approach on inflation, the chances for a recession, the market's reaction, and what investors need to keep in mind.

Listen on Apple Podcasts, Google Podcasts, Spotify or copy to your RSS reader.

Transcript Open new window

After you listen

  • Visit the Market Insights hub for the latest analysis and commentary from Schwab experts.
  • You can also follow Mike Townsend and Liz Ann Sonders on Twitter—@MikeTownsendCS and @LizAnnSonders, respectively.
  • Visit the Market Insights hub for the latest analysis and commentary from Schwab experts.
  • You can also follow Mike Townsend and Liz Ann Sonders on Twitter—@MikeTownsendCS and @LizAnnSonders, respectively.

Inflation is at the center of almost every economic discussion these days, whether among individual investors, fund managers, or elected officials. It goes beyond just high prices on everyday goods and has the potential for long-term effects on the economy. Liz Ann Sonders, Schwab's chief investment strategist, joins Mike to discuss what we can expect as the Fed gets aggressive raising interest rates and if its efforts can bring inflation down without pushing the economy into recession. They also address the impact higher interest rates could have on the national debt and whether they will change the way policymakers think about accumulating debt. Liz Ann then shares her insights on how inflation may affect the markets, describes key trends she is watching, and offers thoughts for investors who are wrestling with current conditions.

Mike also lays out the challenges Democrats face to make progress on key policy priorities before all attention turns to the midterm elections. Their tasks include another round of aid for Ukraine, an additional $10 billion of COVID relief, and a slimmed-down economic package that is likely to focus on helping families deal with inflation. He also looks at the pending confirmations of Fed nominees.

WashingtonWise is an original podcast for investors from Charles Schwab.

If you enjoy the show, please leave a rating or review on Apple Podcasts.

Will government policy affect your money?

Another Big Rate Hike: Does the Fed Have a Plan?

The Fed is determined to break the back of inflation by raising rates again and again—but at what cost to the economy, employment, and the markets? Is there a plan?

With Inflation Offsides, the Fed Keeps Hiking

As expected, the Federal Reserve raised its target range for the federal funds rate by 75 basis points to 3% to 3.25%, citing high inflation as its primary concern.

Investing Takeaways from Summer's Key Bills

Sweeping new laws passed by Congress this summer affect corporate taxes, clean energy, electric vehicles, semiconductor manufacturing, and more. What does it all mean for investors?

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. 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.

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 reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Investing involves risk, including loss of principal.

Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.

This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.

Diversification, asset allocation, and rebalancing strategies do not ensure a profit and do not protect against losses in declining markets. Rebalancing may cause investors to incur transaction costs and, when a nonretirement account is rebalanced, taxable events may be created that may affect your tax liability.

Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see

Soft landings are defined as periods when the economy stops growing but doesn't enter recession.

The National Bureau of Economic Research (NBER) is a private, nonpartisan organization that facilitates cutting-edge investigation and analysis of major economic issues.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

Spotify and the Spotify logo are registered trademarks of Spotify AB.