TITLE

Nervous Money Market Funds Praying for Smaller Rate Cut

AUTHOR(S)
Briggs, Amanda
PUB. DATE
June 2003
SOURCE
Bond Buyer;6/20/2003, Vol. 344 Issue 31661, p1
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
The possibility of another short-term interest rate cut at the meeting of the Federal Open Market Committee has forced an increasing number of firms to probe the impact fee waivers will have on the money market funds they offer. If the federal funds rate target were cut, and if firms choose to leave high fees in place, the fees could begin to consume shareholders' principal, rather than merely reducing their returns. The federal funds rate target, which influences many types of short-term interest rates, is currently at 1.25%, its lowest level in decades. Although short-term rates are at their lowest levels in more than four decades, most funds haven't had to cut costs yet, said Raye Kanzenbach, chief investment officer of Great Hall Investment Funds Co.
ACCESSION #
10125573

 

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