Ignoring the Fed’s rate cut expectations, the size of U.S. money market fund assets hit a new high

According to BlockBeats, on September 6, investors injected cash into U.S. money market funds for the fifth consecutive week, the latest sign of strong demand on the eve of a potential rate cut by the Federal Reserve. Data from the Investment Company Institute showed that as of the week of September 4, about $37 billion flowed into U.S. money market funds, bringing recent inflows to about $165 billion. Total assets rose to a record $6.3 trillion from $6.26 trillion the previous week. Despite strong demand, the debate is heating up over whether money market funds will remain popular once U.S. policymakers begin to lower interest rates. The Federal Reserve is widely expected to cut interest rates later this month. The attractive returns brought by high interest rates have driven a surge in the size of U.S. money market funds. (Cailian Press)

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