With Liz Ann Sonders away, Collin Martin is joined by Schwab Head of Macro Research and Strategy Kevin Gordon for an in-depth conversation on the economy, Federal Reserve policy, bond yields, equities, and global markets.
The episode opens with the idea that “good news can be bad news” for markets. Kevin explains that strong economic data, particularly in the labor market, can sometimes hurt stocks because it increases the likelihood of tighter monetary policy. The conversation then turns to interest rates and the surprising resilience of markets despite elevated bond yields. Collin and Kevin discuss the Fed’s increasingly hawkish tone, the unusual presence of multiple dissents favoring rate hikes, and concerns about communication from Chair Kevin Warsh.
Looking ahead, Collin and Kevin identify inflation data, labor-market reports, Fed commentary, retail sales, and inflation-expectation surveys as the key indicators investors should monitor in the weeks ahead.
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