About this episode
Kathy and Liz Ann catch up on recent market volatility, the Fed's next move, and changes in the economic data. There is some debate about whether the Fed should cut by 50 basis points in September or the expected 25 basis points. They also touch on the importance of inflation, the labor market, and global growth in the Fed's decision-making process. Next, Kathy is joined by Matt Hastings, managing director and head of Bond Index Strategies for Schwab Asset Management. He leads the portfolio management team for the Schwab taxable bond mutual funds and Schwab fixed income ETFs and has overall responsibility for all aspects of the management of the funds. They discuss Matt's background in the industry, his role at Schwab, and the challenges of managing fixed income portfolios on a day-to-day basis. Matt and Kathy discuss how index tracking works, the vital role of liquidity in the bond market, recent market volatility, and the impact of Fed policy. Matt provides insights into the role of bond funds and ETFs for investors and emphasizes the importance of understanding what you're buying. Finally, Kathy and Liz Ann provide their outlook for the next week's economic data and market events. On Investing is an original podcast from Charles Schwab . For more on the show, visit schwab.com/OnInvesting . If you enjoy the show, please leave a rating or review on Apple Podcasts . Important Disclosures Investors should consider carefully information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing. 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. 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Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance. 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. Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please see schwab.com/indexdefinitions . ISM is the Institute for Supply Management. https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/ (0824-ECAD) Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.