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

Odaily News 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 September 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 begin to lower interest rates. The Federal Reserve is widely expected to cut interest rates later this month. The attractive returns from high interest rates have driven a surge in the size of U.S. money market funds. (Cailian Press)