WashingtonWise Investor

Fed and Congress Go Big: Will It Help the Markets?

Episode Summary

The Fed and Congress are moving at breakneck speed to address market and economic uncertainty and to provide relief for businesses and individuals. How far are they prepared to go, and how will it impact investors?

Episode Notes

In this episode of WashingtonWise Investor, Mike is joined by Kathy Jones, Schwab’s chief fixed income strategist, to discuss the Fed’s strong response to the impact of the coronavirus on the markets and the economy as a whole. They assess the various steps the Fed has taken—from dropping interest rates to a planned purchase of billions in Treasuries and mortgage-backed securities to providing businesses with short-term funding. And they share insights on how each are expected to work and the impact they may have on private investors, as well as mortgages and credit cards. 

Mike also covers the ongoing efforts of the administration and Congress to provide economic relief for businesses and individuals and addresses the pressures the coronavirus response is putting on the race for the Democratic nomination. 

WashingtonWise Investor is an original podcast 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

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.

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.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

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.

Diversification strategies do not ensure a profit and do not protect against losses in declining markets. 

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.

Tax-exempt bonds are not necessarily suitable for all investors. Information related to a security's tax-exempt status (federal and in-state) is obtained from third parties, and Schwab does not guarantee its accuracy. Tax-exempt income may be subject to the alternative minimum tax. Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.

(0320-01RD)