Ignoring the Fed's rate cut expectations, the size of U.S. money market fund assets hit a new high

Investors poured cash into U.S. money market funds for a fifth straight week, the latest sign of strong demand ahead of a potential rate cut by the Federal Reserve. About $37 billion flowed into U.S. money market funds in the week ended Sept. 4, bringing recent inflows to about $165 billion, according to the Investment Company Institute. Total assets rose to a record $6.3 trillion from $6.26 trillion the previous week. Despite the strong demand, debate is heating up over whether money market funds will remain popular once U.S. policymakers start lowering interest rates, which are widely expected to happen later this month. The attractive returns from high interest rates have driven a surge in U.S. money market funds. (Cailian Press)