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Fed Rate Cut Boosts Markets, Sparks Active Investing Debate

9/20/2025

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Summary

Story summary

The Federal Reserve's recent rate cut has boosted market performance but raises concerns about future volatility and inflation.
Active investing may help manage market fluctuations, as demonstrated by T. Rowe Price's public exhibit.
Morningstar's study reveals only 21% of actively managed funds outperformed passive peers from July 2015 to June 2025.
Active foreign stock managers achieved a 41% success rate last year, compared to 15% for U.S. stock funds.
Bond investments favor active managers, with 42% outperforming passive benchmarks over the past decade.

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Story summary

The Federal Reserve's recent rate cut has boosted market performance but raises concerns about future volatility and inflation.
Active investing may help manage market fluctuations, as demonstrated by T. Rowe Price's public exhibit.
Morningstar's study reveals only 21% of actively managed funds outperformed passive peers from July 2015 to June 2025.
Active foreign stock managers achieved a 41% success rate last year, compared to 15% for U.S. stock funds.
Bond investments favor active managers, with 42% outperforming passive benchmarks over the past decade.