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Money Market Funds Defy Fed Cuts as Investors Chase Yield
Money Market Funds Defy Fed Cuts as Investors Chase Yield
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BTCCSquare news:
Money market funds are absorbing cash at record levels despite Federal Reserve rate cuts, with the Crane 100 Money Fund Index yielding 3.80% as of December 1. This continues to dwarf bank deposit rates, attracting both retail and institutional investors.
The inflows totaled $105 billion in one week alone, reaching new all-time highs. 'Money market funds continue to draw inflows as yields remain highly attractive amid gradual Fed rate cuts,' said Gennadiy Goldberg of TD Securities.
Corporate treasurers and large investors are particularly active, shifting cash into these funds for better returns without operational hassles. The trend persists even after two consecutive quarter-point Fed cuts in September and October.
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