Money-Market Fund Assets Rise to New All-Time High
claffra/iStock/Getty Images Investment>Mutual Funds Money-Market Fund Assets Rise to New All-Time High Retail investors have been piling into money funds since the Federal Reserve began one of the most-aggressive tightening cycles in decades in 2022. (Bloomberg) -- Money-market fund assets rose to an all-time high, led by inflows into the government sector as investors sought to protect their cash at the end of the year.
About $78.6 billion flowed into US money-market funds in the week through Jan. 3, according to Investment Company Institute data. Total assets rose to $5.965 trillion from $5.89 trillion the week prior.
Retail investors have been piling into money funds since the Federal Reserve began one of the most-aggressive tightening cycles in decades in 2022. But last month, the Fed signaled that campaign is over and projected deeper interest-rate cuts this year.
For the third straight meeting, Fed officials last month kept their main policy rate unchanged, between 5.25% and 5.5%, the highest in 22 years. Minutes from the December gathering showed policymakers concluded progress had been made in reining in inflation but reaffirmed that it would be appropriate for policy to remain at a restrictive stance for some time until inflation was clearly moving down sustainably.
In a breakdown for the week to Jan. 3, government funds — which invest primarily in securities like Treasury bills, repurchase agreements and agency debt — saw assets rise to $4.878 trillion, a $64.7 billion increase. Prime funds, which tend to invest in higher-risk assets such as commercial paper, meanwhile, saw assets rise to $961.7 billion, a $10.3 billion increase.
0 comments Hide comments
Comment * Switch to plain text editorMore information about text formats
Text format CommentsPlain text Comments- Allowed HTML tags: <em> <strong> <blockquote> <br> <p>
- No HTML tags allowed.
- Web page addresses and e-mail addresses turn into links automatically.
- Lines and paragraphs break automatically.
- Load More
- Next Article
- Previous Article
Owl Media Group takes pride in providing social-first platforms which equally benefit and facilitate engagement between businesses and consumers and creating much-needed balance to make conducting business, easier, safer, faster and better. The vision behind every platform in the Owl Media suite is to make lives better and foster a healthy environment in which parties can conduct business efficiently. Facilitating free and fair business relationships is crucial for any thriving economy and Owl Media bridges the gap and open doors for transparent and successful transacting. No advertising funds influence the functionality of our media platforms because we value authenticity and never compromise on quality no matter how lucrative the offers from advertisers may seem.
Originally posted on: https://www.wealthmanagement.com/mutual-funds/money-market-fund-assets-rise-new-all-time-high