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.

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  • 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.

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