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In this episode of WashingtonWiseInvestor, Mike Townsend is joined by Kathy Jones, Schwab’s chief fixed income strategist, to look into what’s driving up long-term interest rates, the Fed’s outlook on inflation and economic growth, and the impact rising bond yields are having on the equites market. Additionally, Kathy shares her insights on the improving opportunities with municipal bonds. Mike also considers how Washington is catching its breath and considering what’s next now that the massive economic stimulus bill is law. And he provides updates on the IRS—finally—moving Tax Day, frosty U.S.-China talks, the latest in a series of Congressional hearings on social media-fueled retail trading frenzy. and the low chances of success of some high-profile tax proposals. WashingtonWise Investor is an original podcast 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 a Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.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. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.  All expressions of opinion are subject to change without notice in reaction to shifting market 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.  Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.  Investing involves risk, including loss of principal.  Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.  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. High-yield bonds and lower rated securities are subject to greater credit risk, default risk, and liquidity risk. Tax-exempt bonds are not necessarily a suitable investment for all persons. Information related to a security's tax-exempt status (federal and in-state) is obtained from third-parties and Schwab does not guarantee its accuracy. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax, Treasury Inflation Protected Securities (TIPS) are inflation‐linked securities issued by the US Government whose principal value is adjusted periodically in accordance with the rise and fall in the inflation rate. Thus, the dividend amount payable is also impacted by variations in the inflation rate, as it is based upon the principal value of the bond. It may fluctuate up or down. Repayment at maturity is guaranteed by the US Government and may be adjusted for inflation to become the greater of the original face amount at issuance or that face amount plus an adjustment for inflation. A bond ladder, depending on the types and amount of securities within the ladder, may not ensure adequate diversification of your investment portfolio. This potential lack of diversification may result in heightened volatility of the value of your portfolio. You must perform your own evaluation of whether a bond ladder and the securities held within it are consistent with your investment objective, risk tolerance and financial circumstances. All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Periodic investment plans (dollar-cost-averaging) do not assure a profit and do not protect against loss in declining markets. (0321-1Y0T)