"Treasury money market funds: Doomed?" asks Fortune. "When the Federal Reserve lowered its interest rate yet again last week, the future grew a little bleaker for Treasury-only money market funds, which account for one-fifth of the $3.7 trillion invested in money market funds," says the article. "But most funds have a long way to go before they're forced to shut down altogether, according to Peter Crane, the head of money market research firm Crane Data." It quotes Crane, "The idea of money funds going out of business is incorrect.... Even the Treasury-only funds have fees that they can waive." Fortune adds that "Crane predicts that some funds may consider paying negative yields until the tide turns 'like a checking account with a monthly fee'." See also: "Fed's Rate Cutting Puts Shine on CDs" writes The Wall Street Journal, saying, "With the Federal Reserve's rate cutting driving money-fund yields to razor-thin levels, certificates of deposit are looking like a more attractive place for many investors to stash cash." But the Journal adds, "To investors who want ready access to their cash, attractive CD yields may not matter much."
