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MONEY MARKET FUNDS IN A LOW RATE ENVIRONMENT Thumbnail

MONEY MARKET FUNDS IN A LOW RATE ENVIRONMENT

After pushing interest rates gradually upward for three years, the Federal Reserve dropped the benchmark federal funds rate to near zero (0%–0.25%) in March 2020 to help mitigate the economic damage caused by COVID-19.¹ The funds rate affects many short-term interest rates, including the rates on money market mutual funds, which were already low to begin with.

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