Still In the Money
A Money Market Fund Expert Discusses the Latest Issues Surrounding that Alluring Part of the Market. 5%-Plus Yields Anybody?
Peter Crane
When Income Matters Today launched nearly six months ago, our first guest was Peter Crane, president Crane Data. Money market funds were raking in billions of dollars of assets, a popular destination for retail and institutional customers to park their cash and earn a nice yield. Now, the Federal Reserve is expected to begin cutting short-term interest rates sometime this year, though the timing remains uncertain. One potential impediment to lowering rates in the short term: The U.S. economy remains very strong. Another potential worry is that while inflation has eased considerably, it’s still not back to the 2% level targeted by the Fed.
Money market funds remain very popular, thanks to attractive yields at the front end of the curve. The three-month U.S. Treasury bill was recently yielding about 5.4%, nothing to sneeze at. IMT caught up with Crane this week, and the link to the interview is below:
Keep reading with a 7-day free trial
Subscribe to Income Matters Today to keep reading this post and get 7 days of free access to the full post archives.