Hoarding cash

The #FOMC will publish their decision on interest rates on Wednesday. Consensus points to a 25 bps increase, but the key part will be J Powell’s guidance/ speech after the meeting. The #ecb will also publish official rates this week, and a hike is also expected. In this environment, investors are hoarding cash like never before. Coming from zero interest rates, a money market fund that’s is able to pay 5%ish with zero duration risk, is starting to look attractive. It can also be a very bullish signal if the fed delivers a surprisingly dovish view, and the market interprets rates are peaking.

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