With the Fed fund rate now at 5.25%. many experts believe money market funds will soon reach yields of 5%, and when that happens, investors might move assets from equity funds to money market funds, the Orange County Register reports.
"I think 5% holds some psychological significance," said Peter Crane, president of
Money market funds track the Fed fund rate closely. Although it was raised last week and money market funds typically take one to two months to catch up to the Fed fund rate, David Glocke, a portfolio manager at