Ignoring the Fed's rate cut expectations, the size of U.S. money market fund assets hit a new high
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 Federal Reserve rate cut. Data from the Investment COMP Institute showed that in the week ending September 4, about $37 billion flowed into U.S. money market funds, bringing the recent inflow to around $165 billion. Total assets rose from $6.26 trillion the previous week to a record $6.3 trillion. Despite the strong demand, there is a growing debate over whether money market funds will remain popular once U.S. policymakers begin to lower interest rates. The general expectation is that the Federal Reserve will cut rates later this month. The attractive returns from high interest rates have fueled a surge in the size of U.S. money market funds.
