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.

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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.

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Positive 2026 Outlook Amid Affordability Concerns