Federal Reserve announcements, financial news

US Money-Market Fund Assets Hit Record $6.76 Trillion Amid $121 Billion Weekly Inflow

Sep 27, 2024, 07:00 AM

Assets in US money-market funds have reached a record high, despite the Federal Reserve's recent rate cuts. According to Crane Data, assets in money-market funds surged by $126 billion, hitting a record $6.76 trillion as of Tuesday. The Investment Company Institute reported that money-market assets hit $6.4 trillion in the week ending September 25. This trend continues as investors pour cash into these funds, with $121 billion added in the past week, marking the largest inflow since the collapse of SVB. Bank of America noted that cash funds saw an inflow of $129.1 billion in the week to Wednesday, the largest in 18 months and the fifth largest this decade. Despite expectations that lower rates would drive money out of these funds, the opposite has occurred, with cash-like funds attracting significant liquidity. Total assets reached $6.42 trillion by September 25. Additionally, in August alone, $114.4 billion flowed into money markets and $33 billion into fixed-income funds.