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Chart of the Week
Sep 12, 2025
2 MIN READ

Cash assets continue surge despite pending rate cuts

New
Money market fund assets top $7.2 trillion. But elevated inflation and likely Fed rate cuts pose challenges.
authors
Christopher Bole
Christopher Bole
Vice President, Financial Writer
VIEW BIO
Money market fund assets under management vs. Federal funds rate
Source: Bloomberg Finance, L.P., as of September 9, 2025. Money market data based on Investment Company Institute.
  • Money market fund assets have surged nearly 60% since January 2022, topping $7.2 trillion.1
  • This reflects investors preference for “safe” assets after the pandemic-era selloff as well as the sharp rise in short-term rates amid the Fed rate hike cycle in 2022 and 2023.
  • Today, however, elevated inflation pressures challenge the real return of cash. With markets pricing in approximately 150bps in Fed rate cuts through December 2026, investors holding meaningful cash allocations may face diminishing yields and real returns.1
  • Within this environment, investments that offer alternative sources of income, diversification and growth potential may be of paramount importance.
contributing authors
Christopher Bole
Christopher Bole
Vice President, Financial Writer
view bio
footnotes + disclosures
  1. Bloomberg Finance, L.P., as of September 9, 2025. Based on data from the Investment Company Institute.

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