Investors Continue To Inject Cash Into US Money Market Funds

According to BlockBeats, investors have injected cash into US money market funds for the fifth consecutive week, signaling strong demand ahead of a potential interest rate cut by the Federal Reserve. Data from the Investment Company Institute shows that approximately $37 billion flowed into US money market funds in the week ending September 4, bringing the recent inflows 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 growing debate about whether money market funds will remain attractive once US policymakers begin to lower interest rates. It is widely expected that the Federal Reserve will cut rates later this month. The high returns driven by elevated interest rates have significantly boosted the size of US money market funds.