Economic TimesLean R·
US Stock Market: Money market funds shorten maturities as Fed rate uncertainty drives cautious positioning
Money market funds are shortening portfolio maturities due to Federal Reserve rate path uncertainty. Managers are favoring floating-rate notes and repurchase agreements for flexibility. This defensive shift occurs as fund assets reach record highs near $8 trillion. They balance limited overnight returns with duration risk from longer maturities. Interest rate futures suggest a potential Fed rate hike in late 2026.
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