Investors Shift $37 Billion to Money Market Funds Ahead of Fed Rate Cuts

Reported about 2 months ago

In a notable shift, investors have directed $37 billion into money market funds (MMFs) in anticipation of the U.S. Federal Reserve cutting interest rates this September, marking a three-week inflow total of $145 billion— the largest since January. Despite also investing $20.4 billion in stocks and $15.1 billion in bonds, BofA predicts that the impending rate cuts may not drive substantial equity buying, as cash typically flows to MMFs ahead of such cuts for their higher returns compared to short-term Treasury bills.

Source: YAHOO

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