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Money market funds typically hold very low-risk assets that are easy to buy and sell, including short-dated U.S. government debt. The yields available on these vehicles are now the best in years as they rise with interest rates, which the U.S. Federal Reserve Board has lifted to 15-year highs in its quest to curb inflation.
“Given the volatility we’re seeing in the market, every investor has to ask themselves: Does my cash risk profile match [my overall risk profile], and am I sufficiently diversified among the choices?” Neel Kashkari, president of the Minneapolis Fed, on Sunday said the stresses in the banking sector brought the U.S. closer to a recession.
They'll be safer there?