Why are people parking their cash in money-market funds?
The Federal Reserve has also lifted it benchmark interest rates to as high as 5% compared to almost zero 12 months ago - the steepest jump in US borrowing costs since the 1980s. That has boosted money-market yields, meaning investors can get a higher return on such funds versus storing their cash in banks, which have been slow to increase savings rates in line with the Fed.
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