Ignoring the expectations of the Federal Reserve's interest rate cut, the scale of US money market fund assets hits a new high

Investors have poured cash into U.S. money market funds for the fifth consecutive week, a strong sign of demand ahead of potential interest rate cuts by the Federal Reserve. Data from the Investment Company Institute shows that about $37 billion flowed into U.S. money market funds in the week ending September 4, bringing recent inflows to approximately $165 billion. Total assets rose from $6.26 trillion in the previous week to a record high of $6.3 trillion. Despite strong demand, debate is heating up over whether money market funds will remain popular once U.S policymakers start cutting rates. The Fed is widely expected to cut rates later this month. High interest rates and attractive returns have fueled a surge in size of U.S money market funds.