Reuters published, "Investors rush to money market funds before Fed rate cut, BofA says," which tells us, "Investors poured $​37 billion into cash-​like money market funds (​MMFs) in the week to Wednesday, Bank of America said on Friday, as they braced for the U.​S. Federal Reserve to cut interest rates in September. It put MMFs on track for their biggest three-​week cumulative inflow since January at $​145 billion, BofA said, citing figures from financial data provider EPFR." Reuters states, "​Many fund managers hope rate cuts will lower the returns on MMFs and cause a rush of cash into stocks and bonds. Yet big investors typically flock to money market funds before the Fed cuts rates, as the range of short-​term fixed income securities in the funds means they tend to offer higher returns for longer than short-​term Treasury bills." They quote BofA strategist Jared Woodard, "Rate cuts not a likely spark for equity buying from the $​6.​2 trillion money market fund (​sector)."

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