Rate Cuts Begin, but It's the Message That Matters

September 19, 2024 Michael Townsend
As the Fed begins cutting rates, it's important for investors to understand what data the Fed is watching and how that might be a guide to the pace and timing of future actions.
Transcript Open new window

After you listen

  • Follow Mike Townsend and Kathy Jones on X (formerly known as Twitter)—@MikeTownsendCS and @KathyJones, respectively. 
  • Check out the podcast that Kathy Jones and Liz Ann Sonders co-host—On Investing. The latest episode, featuring former Fed economist Claudia Sahm, is set to publish on Friday, September 20.
  • Follow Mike Townsend and Kathy Jones on X (formerly known as Twitter)—@MikeTownsendCS and @KathyJones, respectively. 
  • Check out the podcast that Kathy Jones and Liz Ann Sonders co-host—On Investing. The latest episode, featuring former Fed economist Claudia Sahm, is set to publish on Friday, September 20.
@MikeTownsendCS and @KathyJones, respectively. 
  • Check out the podcast that Kathy Jones and Liz Ann Sonders co-host—On Investing. The latest episode, featuring former Fed economist Claudia Sahm, is set to publish on Friday, September 20.
  • " role="dialog" aria-label="
    • Follow Mike Townsend and Kathy Jones on X (formerly known as Twitter)—@MikeTownsendCS and @KathyJones, respectively. 
    • Check out the podcast that Kathy Jones and Liz Ann Sonders co-host—On Investing. The latest episode, featuring former Fed economist Claudia Sahm, is set to publish on Friday, September 20.
    " id="body_disclosure--media_disclosure--183996" >

    • Follow Mike Townsend and Kathy Jones on X (formerly known as Twitter)—@MikeTownsendCS and @KathyJones, respectively. 
    • Check out the podcast that Kathy Jones and Liz Ann Sonders co-host—On Investing. The latest episode, featuring former Fed economist Claudia Sahm, is set to publish on Friday, September 20.

    Investors are cheering the Fed's first rate cut in four years, but there is more to that story. Kathy Jones, Charles Schwab's chief fixed income strategist, joins host Mike Townsend to discuss what prompted the Fed to take action now, as well as what economic factors will guide how far the Fed lowers rates and how quickly they roll out additional cuts. Kathy also considers what rate cuts mean for the bond markets and shares where she sees potential opportunities for fixed income investors in this changing environment.

    Mike shares his thoughts on how Congress will respond to the fast-approaching deadline to fund all government operations and avoid a shutdown. He also looks at how the presidential race is shaping up and weighs in on how the races in the Senate and the House may lead to another divided Congress. Finally, Mike examines the presidential candidates' tax proposals and explores whether they have any chance of actually becoming law. 

    If you enjoy the show, please leave a rating or review on Apple Podcasts.