Many people took advantage of the rising rates, but many others didn’t.
About $17.5 trillion sits in commercial banks, for example, and the average savings account earns 0.45% in interest a year, according to the Federal Deposit Insurance Corporation.
The amount of cash in money-market funds has grown to record highs and currently sits at $6.4 trillion, an increase of more than $1 trillion from 2022.
Both individual investors and institutions are drawn to the liquidity and high yields of this type of fund, which typically works by investing in short-term debt securities like Treasury bills.
Wall Street Journal 12 June 2024
https://www.wsj.com/personal-finance/interest-rates-savings-yield-money-a4674253
Money-market funds swell to record $5.4 trillion as savers pull money from bank deposits
https://englundmacro.blogspot.com/2023/03/how-federal-reserve-drained-financial.html
Kommentarer