The recently released July 26-27 policy minutes from the Federal Open Market Committee suggest that the Federal Reserve will continue to raise interest rates at an aggressive pace. According to the minutes, Fed officials saw “little evidence” that inflationary pressures were easing and expressed determination to bring inflation down.

Without providing specific guidance for future increases, officials said they would closely monitor the data before deciding on rate hikes. “Moving to a restrictive policy stance was necessary to meet the Committee’s legislative mandate to promote maximum employment and price stability,” the minutes said.

However, US central bank officials have suggested that if the rate hikes seem to be having the desired effect, then they could start to reverse those hikes.

“As the monetary policy stance tightens further, it would likely become appropriate at some point to slow the pace of policy rate increases while assessing the effects of cumulative policy adjustments on economic activity and inflation. “, adds the report.

As the Fed hints that it plans to continue with its hawkish plan to fight inflation, investors may want to take a more proactive approach to investing in fixed income securities. This is where an active fixed income manager can help.

Passive strategies often lack the flexibility to adapt to changing market environments. Meanwhile, active bond ETFs can offer the potential to outperform benchmarks and bond indices.

“Navigating the bond market is even more difficult for advisors this year as bond values ​​decline,” said Todd Rosenbluth, head of research at VettaFi. “However, the ability to tap into the expertise of experienced managers as well as the liquidity advantages of a ETFs was convincing.

As part of his range of active exchange-traded fundsT. Rowe Price offers a range of actively managed fixed income ETFs, including the T. Rowe Price QM US Bond ETFs (TAGGG C+)the T. Rowe Price Total Return ETFs (EARLY VS)and the T. Rowe Price Ultra Short Term Bond ETFs (TBUX B).

T. Rowe Price has been in the investment industry for over 80 years conducting hands-on research with companies, utilizing risk management and employing a multitude of experienced portfolio managers averaging 22 years of experience .

For more news, insights and strategy, visit our Active ETFs Channel.