Inflation Peaking but Pain Won’t End

The latest CPI and jobs reports indicated that inflation may have peaked, sending the markets into a big rally. But there are worrisome signals beneath the surface warning that inflation is far from over. Kevin Gordon, a senior investment researcher at the Schwab Center for Financial Research, joins host Mike Townsend to assess the latest data and discuss how far the Federal Reserve is willing to go before easing its series of rapid interest rate hikes. They also examine the hurdles the economy still faces before we can leave the bear market behind, whether the latest crypto meltdown is having spillover effects on the equity markets and what potential gridlock in Washington may mean for the markets in the year ahead. Mike also shares his thoughts on the midterm elections and highlights what may be on tap for the post-election session of Congress, including a government funding debate, retirement savings legislation and a longshot bid to raise the debt ceiling.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:<br />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. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal. Digital currencies, such as bitcoin, are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view Bitcoin as a purely speculative instrument.Correlation is a statistical measure of how two investments have historically moved in relation to each other, and ranges from -1 to +1. A correlation of 1 indicates a perfect positive correlation, while a correlation of -1 indicates a perfect negative correlation. A correlation of zero means the assets are not correlated.Environmental, social and governance (ESG) strategies implemented by mutual funds, exchange-traded funds (ETFs), and separately managed accounts are currently subject to inconsistent industry definitions and standards for the measurement and evaluation of ESG facto