According to Jinshi Data, before the Federal Reserve began to cut interest rates, investors locked in high yields, pushing money market fund assets to a record high. Data from the Investment Company Institute (ICI) showed that in the week ending August 21, U.S. money market funds attracted $24.9 billion, and the inflows this month reached about $106 billion, pushing total assets to a record high of $6.24 trillion.

High interest rates continue to draw inflows to these funds even as traders bet the Fed will start an easing cycle next month. Traders are pricing in about a full percentage point in rate cuts by the end of the year, but Fed officials have said a gradual pace of reductions may be appropriate.

Even if the Federal Reserve starts to lower interest rates, money market funds are likely to continue to be popular because institutions and corporate treasurers alike tend to outsource cash management during this time to earn a yield.