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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