The money-market fund industry is booming as the Federal Reserve holds interest rates steady.
Bloomberg, citing info from Crane Data LLC, reports that the amount of capital invested in the money-market industry has now soared to a record $7.4 trillion, with $320 billion pouring into the funds in 2025 so far.
Money-market funds are financial instruments that allow people to invest in lower-risk and short-term debt securities, including US Treasuries.
Deborah Cunningham, chief investment officer for global liquidity markets at Federated Hermes, tells Bloomberg that the Federal Reserve’s ongoing monetary policy choices suggest the money market industry could continue to grow and easily stretch to $7.5 trillion in assets this year.
“Five-percent-plus rates were nirvana, four-percent-plus is still very good – and if we dip down into the high threes, that’s quite acceptable as well.”
The Federal Open Market Committee (FOMC) announced last week that it planned to maintain the target range for the federal funds rate at 4.25-4.5%, arguing that it was the most suitable level to achieve both maximum employment and controlled inflation. The Fed has held interest rates steady since December, when it cut the rate by 0.25%.
Michael Bird, senior fund manager at Allspring Global Investments, tells Bloomberg that it’s “not surprising” that asset levels in the money-market sector have grown.
“Even if the Fed picks up its easing campaign this year, rates will still be relatively high…”
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
The post Investors Pour $320,000,000,000+ in Six Months in One Industry Being Boosted by Uncertainty: Report appeared first on The Daily Hodl.
Spanish 
English