$7 Trillion 'Wall of Cash' Worry Is Looming for Investors Once Fed Interest Rate Cuts Start

$7 trillion 'wall of cash' worry is looming for investors once Fed interest rate cuts start

Trillions of dollars are parked in money market funds due to years of high rates, but with the Fed poised to cut, portfolio moves will need to be made.

Wall Street’s Week Ahead: Investors seek Fed’s view of shaky labour market as rate cut looms

Meeting comes on heels of weak employment reports

$7 Trillion ‘Wall Of Cash’ Worry Is Looming For Investors Once Fed Interest Rate Cuts Start

By Eric Rosenbaum This may not be an era in which Americans are awash in physical currency fattening their wallets, but we are awash in cash parked inside accounts that have been generating attractive yields thanks to Federal Reserve interest rate hikes to combat inflation. There is a record amount of cash in money market funds, roughly $7.6 trillion, according to Crane Data. But as the Federal Reserve prepares to cut rates for the first time in…

Nearly $1 trillion floods ETFs as markets front-run the Fed - Cryptopolitan

Wall Street once moved largely in step with the Federal Reserve’s policy rate. Signs of rate hikes made investors pull back, while hints of lower rates pushed prices up. Next week’s meeting will test if that pattern still holds in a year that’s been unusual. Investors haven’t waited on Jerome Powell this year. Stocks are at records, credit is active, and exchange-traded funds have attracted more than $800 billion so far, including $475 billion f…

JPMorgan Analysts Reveal Their Forecast for Next Week's FED Interest Rate Decision - What Will Powell Say?

The post JPMorgan Analysts Reveal Their Forecast for Next Week’s FED Interest Rate Decision – What Will Powell Say? appeared on BitcoinEthereumNews.com. JPMorgan Chase US chief economist Michael Feroli said he expects the Fed to cut interest rates by 25 basis points next week. Feroli noted that some members wanted a larger rate cut, but none favored leaving rates unchanged. He also noted that the Fed’s dot plot projections are expected to projec…