​ Fed Rate Cuts Could Send Money Market Fund Assets Over $​3 Trillion. Institutional money market mutual fund assets have increased by an average of 3.​4% a month during periods when the Federal Reserve cuts interest rates, according to a study of Federal Reserve data since 1990 done last year by Crane Data and sponsored by The Reserve. Money funds, which have increased by almost $​450 billion to a record $​2.​83 trillion year-​to-​date through Sept. 12, are on course to break above the $​3 trillion level within two months at this pace. Money funds gain assets during rate cuts as institutional money moves from overnight repurchase agreements (​repo) and direct money market instruments in an attempt to delay the impact of lower rates.

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