What's the state of the economy now? How much of the latest GDP growth is driven by capex? In this episode, Liz Ann Sonders and Kathy Jones discuss the release of the latest Fed minutes, mixed signals on inflation and unemployment, and weakness in the survey data itself.

Then, Liz Ann and Kathy are joined by Kevin Gordon, Schwab's head of macro research and strategy. Kevin shares his perspective on the overall backdrop in the context of the latest GDP report from the fourth quarter and the impact of tariffs. He and Liz Ann also discuss the various phases of the AI rollout. Additionally, they consider how slowing immigration and labor force growth could become structural constraints on long‑term GDP expansion.

You can read the article that Liz Ann and Kevin wrote titled “Cascade: AI’s Latest Phase” on Schwab.com.

On Investing is an original podcast from Charles Schwab. For more on the show, visit schwab.com/OnInvesting.

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Mixed Signals & Moving Targets