Are Rate Hikes Pushing Markets to Breaking Point?

After another roller coaster week in the markets, Kathy Jones, Schwab's chief fixed income strategist, joins the podcast to talk about how the Fed's aggressive rate hikes are impacting the bond market, the dollar, and the global economy. She shares her thoughts on the bond market's influence on the stock market, the bond crisis in the U.K., and the impact of a strong dollar on U.S. consumers, multinational companies, and the economies of emerging-market countries. Kathy also reminds investors of the four reasons why bonds can play an important role in a diversified portfolio during these volatile times.

Additionally, host Mike Townsend provides updates on Congress avoiding a government shutdown—for now—as well as a new IRS ruling that will come as a relief to anyone who has recently inherited an IRA. He also provides his perspective on key races to watch in next month's midterm elections and why the impending debt ceiling crisis is going to be a big concern for the markets next year.

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. 

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Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

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.

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