Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
ThinkAdvisor

Portfolio > Mutual Funds

Money Market Managers Predict Higher Rates

X
Your article was successfully shared with the contacts you provided.

NU Online News Service, April 25, 2005, 10:25 a.m. EDT

Portfolio managers of rated money market funds predict the Fed Funds rate will continue to rise to up to 4.25% by year-end from the current 2.75%, according to a report from Standard & Poor’s Ratings Services, New York.[@@]

S&P has raised its Fed Funds year-end target rate to the 4% to 4.5% range. It predicts that the Fed may start raising rates by 0.5% at a time as the economy heats up and inflation accelerates.

“The average taxable rated money market fund yielded only 0.59% a year ago, and that figure has almost quadrupled to 2.19% now,” notes S&P fund analyst Joel Friedman. “With money market fund yields on the rise, portfolio managers are breathing a sigh of relief, but this does not mean the search for higher yields has ended.”


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.