Unscrambling the Economy’s Mixed Messages

Lately the data on the economy and the markets has been all over the place, making it hard for investors to get a good read on where things are headed. Some indexes are way up, while others are only up a few percent. Inflation has come way down but remains sticky—and the Fed is contemplating raising rates again. Consumers are spending a lot of money on travel and services, but retailers are starting to feel the pinch as spending patterns have changed. So how do investors make sense of all the data? Kevin Gordon, senior investment strategist with the Schwab Center for Financial Research, joins Mike Townsend to dig into what’s behind the data, why key data points often need to be revised, and how investors can best interpret the information. They also share insights on the recession-versus-soft-landing debate, whether markets care about government shutdowns, and what to look for from the markets in Q4.Mike also provides updates on Congress careening toward a possible government shutdown later this fall, the confirmation of a trio of Federal Reserve Board nominees, and a recent IRS ruling that provides clarity on two key retirement savings initiatives.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 DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.<br />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.Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly.​Past performance is no guarantee of future results.​This information provided here is for general informational purposes only, and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors.Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Small cap investments are subject to greater volatility than