Money Market Fund Assets Reaches New Record As Interest Rates Increase Above 5%

Around $14 billion was recently deposited into money market fund assets which resulted in a new all-time high record. Further reports say the interest rates continue to increase above 5% which attracts investors amidst the Federal Reserve attempting to boost the rates.

Data from the Investment Company Institute revealed that early this week, money market fund assets reached a new all-time high record as around $14 billion were deposited through August 30. Furthermore, the total assets reached $5.58 trillion in comparison to the $5.56 trillion from the past week. Reports say the recent total is the highest since numbers were first collected in 1992.

According to Harris, the recent total is the highest amount ever since data was first collected in 1992. In addition, the interest rates of the money market fund assets also continue to increase above 5% amidst the Federal Reserve‘s attempt to keep them rising.

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Money Market Fund Assets Increase

However, according to Hollerith, the money market fund assets breaking a new record is not good news for banks that have struggled to retain their depositors for the past year. Reports from the Federal Reserve say since the month of January, deposits at all banks in the U.S. have declined by $371 billion, while money market fund assets have increased by more than $769 billion.

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