Competing Signals: Markets Ahead of the Midterms

This episode of WashingtonWise examines whether historical midterm-election patterns still offer a useful guide to markets. Host Mike Townsend talks with Joe Mazzola about earnings strength, bond-market turmoil, a possible Fed rate hike and approaches investors can consider for short-term volatility. Townsend also covers Washington developments, including a Fed meeting preview, a temporary government shutdown reprieve and the national debt passing $40 trillion.

1. The episode asks whether markets are usually flat before midterms and whether that history still applies in 2026.
2. Joe Mazzola describes an unusually strong earnings backdrop with revenue, profit and margin growth rising together, and a higher bar for future results.
3. The conversation covers how bond-market turmoil is affecting equities and how the market is thinking about a possible Fed rate hike.
4. Mike Townsend discusses next week's Fed meeting, Congress staving off a government shutdown for now, and national debt passing $40 trillion.