Eye Active ETFs to Ride Potential Rate Cuts

Don’t look now, but markets are once again getting excited about the prospect of potential rate cuts. Following months defined by rising rates, investors are looking forward to inflation cooling sufficiently for the Fed to finally cut.

Such cuts would, of course, boost the economy significantly and have broad implications for the investment landscape. Areas that had previously turned off investors and markets, then, could instead appeal. Active ETFs are a solid option to ably navigate that landscape.

Inflation has already cooled significantly, while also cooling the Fed’s desire to raise rates more. Indeed, we’ve already seen the central bank pause on further hikes this month and last.

See more: “As Global Inflation Ebbs, Try a Global Active ETF

Interest rate futures last week pointed to as much as a 60% chance that the Fed would lower rates as soon as May. At that meeting, per CME Group data, the central bank could cut by about 25 basis points. Indeed, it may even see as many as four total cuts.