The Fed’s latest 25 basis point rate cut was widely expected, but uncertainty lingers over how aggressive or conservative future policy will be. While the Fed currently projects only one cut in 2026, that could shift depending on economic data, leaving investors cautious on yield. 

This makes high yield municipal bonds an option worth considering, given their tax advantages and potential return relative to corporates. An active fund like the Invesco Rochester High Yield Municipal ETF (IROC) offers exposure with a 30-day SEC yield of 4.69% and a 12-month distribution rate of 4.43%. 

Active management is key in this space, as it allows portfolio managers to adapt holdings to evolving conditions and manage risk. 

Finsum: Taking an active approach when you can see the macro uncertainty start to creep up is a good strategy in fixed income.