Economy Is Thriving but Fed Not Ready to Let Go

February 8, 2023
The economy is thriving, jobs and wages are growing, but the Fed is promising more rate hikes. What are the markets and investors to make of these mixed messages?

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After you listen

  • Follow Mike Townsend and Kathy Jones on Twitter—@MikeTownsendCS and @KathyJones, respectively.
  • Check out Schwab's Insights & Education for the latest commentary from Schwab experts
  • Follow Mike Townsend and Kathy Jones on Twitter—@MikeTownsendCS and @KathyJones, respectively.
  • Check out Schwab's Insights & Education for the latest commentary from Schwab experts

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.

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.

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