US Bank Deposits Drop: Investors Flock to Money Markets
Massive amounts of capital are making their exit from the conventional banking structure, with money market funds experiencing a notable surge in incoming funds.
Recent data from the Federal Reserve Economic Data (FRED) platform illustrates that, during the period spanning August 10th to the 16th, approximately $48.81 billion was withdrawn from American bank accounts.
Over the past year, the aggregate sum of deposits within U.S. banks has dwindled from $18.03 trillion to $17.29 trillion – signifying a reduction of approximately $740 billion.
This trend of deposit attrition coincides with money market funds observing their most substantial influx in a span of six weeks as investors seek stable yields for their liquid assets.
Refinitiv Lipper’s data indicates that, despite maintaining a net divestment stance concerning U.S. equity funds, investors directed a substantial $32.29 billion into money market funds over a week, as Reuters reported.
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Various sectors, including healthcare, financials, metals & mining, and utilities, encountered losses amounting to $747 million, $579 million, $556 million, and $497 million, respectively.
This rush towards money markets aligns with the growing consensus among analysts, anticipating a prolonged period of higher interest rates rather than an abrupt policy shift by central banks.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
