Rates Set to Rise: How High, How Fast, How Long?

March 1, 2022
How high and fast must interest rates rise before consumers and companies slow spending enough to bring inflation under control? Will these rate hikes impact jobs and the economy?

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  • Follow Mike Townsend and Kathy Jones on Twitter—@MikeTownsendCS and @KathyJones, respectively.
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  • Follow Mike Townsend and Kathy Jones on Twitter—@MikeTownsendCS and @KathyJones, respectively.
  • And for all the latest analysis and commentary from Schwab experts, visit our Market Insights hub.

Too much spending coupled with too few goods caused inflation to rise rapidly, and it's hanging on longer than most analysts anticipated. The standard antidote for inflation is to raise interest rates with the intent to cool spending. But what does that mean for investors? How long will it take before we see things start to change? How much will it hurt employment? Does the Fed have a plan for where they are going with rates so that the economy isn't overly burdened? And will the Russia-Ukrane war impact the Fed's decisions? Kathy Jones, Schwab's chief fixed income strategist, joins Mike Townsend to discuss these questions and offer ideas for investors during this chaotic time.

Mike also looks at how a desire to get aid to Ukraine quickly could speed up efforts by the House and Senate to finalize a long-overdue package of appropriations to fund the government; how the hold up to confirm five members of the Fed may impact upcoming monetary policy decisions; what Judge Ketanji Brown Jackson's path to confirmation to the Supreme Court may look like; and how some Members of Congress are still focused on fixing the state and local tax deduction.

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