Money Market Funds, Large CDs, Small CDs, and Total Deposits: Americans’ Huge Piles of Interest-Earning Cash as Rates Drop

Balances in money market funds held by households at the end of Q3 jumped by $167 billion from the prior quarter to $4.11 trillion, according to the Fed’s quarterly Z1 Financial Accounts released yesterday. This massive jump in MMF balances occurred even as the Fed started its rate-cut cycle with a 50-basis point cut...