AGGY ETF

The Federal Reserve's September interest rate cut and expectations of more to follow are renewing interest in bonds. But some advisors and investors may be concerned about the impact lower rates have on the income in fixed income.

While interest rate cut expectations have seemingly been all over the map this year, there's emerging consensus that clarity will soon avail itself if/when the Federal Reserve lowers interest rates in September. Thus, there's also emerging sentiment that now is the appropriate time for investors to consider revisiting bonds or increasing established fixed income exposure.

Data is indicating inflation and the U.S. economy are cooling. So speculation is intensifying that September will bring with it a much awaited interest rate cut by the Federal Reserve.

The Bloomberg U.S. Aggregate Bond Index is one of the most widely observed fixed income gauges in the world. And it serves as the benchmark for a variety of exchange traded funds and index funds.

By Behnood Noei, CFA Associate Director, Fixed Income and Rick Harper Chief Investment Officer, Fixed Income and Model Portfolios As many readers of this piece would likely agree, returning from year-end holidays and preparing for another year of market volatility, monetary/fiscal/geopolitical challenges and the added bonus of U.S. presidential elections requires significant mental preparation.

Hear that? That's the sound of numerous advisors and investors looking around for a sign in fixed income investing. Fed Chair Jerome Powell appears intent on convincing markets that, yes, we could be in for more rate hikes.