Affordability is the political buzzword of the moment, contributing to a widening gap between what consumers and investors think about the economy versus how the economy is actually performing. In this episode, Kevin Gordon, head of macro research and strategy at the Schwab Center for Financial Research, joins host Mike Townsend to discuss how affordability, though difficult to define, is shaping consumer sentiment and policy debates, especially as economic data and public perception diverge. Kevin shares his perspective on the softening jobs market, sticky inflation, the accuracy of government data, the deep divisions at the Federal Reserve, and how tariffs will continue to be a major issue for investors to watch. He also discusses his 2026 Market Outlook, highlighting potential opportunities for investors in the coming year even as concerns increase about the sustainability of the bull market.

And Mike shares his thoughts on another looming government shutdown deadline, the battle on Capitol Hill over health care subsidies, and why a Republican victory in a recent special election is signaling that Republicans may be in for a rough ride in next year's midterms.

Check out Schwab's 2026 Outlook: U.S. Stocks and Economy.

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

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.

This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned 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 decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political 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.

Investing involves risk, including loss of principal.

All names and market data shown are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

This information 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.

Small cap investments are subject to greater volatility than those in other asset categories.

Indexes are unmanaged, do not incur management fees, costs, and expenses (and/or "transaction fees or other related expenses"), and cannot be invested in directly. For more information on indexes, please see ​schwab.com/indexdefinitions

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

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The longest government shutdown in U.S. history may be over, but Washington now finds itself facing several tough issues that will have significant implications for the markets and the economy. In this episode of WashingtonWise, host Mike Townsend examines the fallout from the shutdown, including the risk of another shutdown in early 2026, how the lack of government economic data could impact the Fed's December decision on rate cuts, and how the ongoing debate over health care subsidies remains unresolved. He discusses why investors should keep an eye on two critical Supreme Court cases—one on the legality of much of President Trump's tariff policies and one that goes at the heart of Fed independence. He also shares his perspective on the 2025 elections, what they may signal for the 2026 midterms, and why more lawmakers than usual are calling it quits rather than running for re-election. Finally, Mike explores how the end of penny production after more than 230 years could be tricky for retailers and banks.

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
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.

This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned 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 decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political 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.

Investing involves risk, including loss of principal.

The Charles Schwab Corporation provides a full range of brokerage and financial advisory services through its operating subsidiaries. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (Member SIPC [link to: https://www.sipc.org/] offers investment services and products, including Schwab brokerage accounts.

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