Don’t be distracted by the Fed drama
We want inflation to fall while the economy and labour market remain strong. Everyone deserves this, and it’s the reason the US Federal Reserve decided last week to pause its rate-cutting cycle, leaving the fed funds target range at 4.25-4.50%. But investors in liquidity products have benefited from the elevated interest rates and should continue […]
A gorgeous vista for cash managers
After a year of ever-changing clouds, monetary policy looks clearer in 2025. The Federal Reserve seems to finally have realized it miscalculated in September by slashing rates. Inflation had already plateaued and the labor market was weakening, but hardly weak. Faced with a strong economy, officials have wised up to the reality that policy must be […]
Money markets hit record high
Records, as they say, are made to be broken. But some seem so out of reach we don’t pay attention to them until they are nearly upon us. Think baseball legend Cal Ripken’s consecutive games-played streak, US swimmer Katie Ledecky’s gold medals or basketball star LeBron James’ career points. That’s the case with the record […]
Another banner year for liquidity?
2025 Outlook
Sky high
The Chicken Little1 predictions that the US Federal Reserve easing cycle would lead to an exodus of assets from liquidity products have been proven wrong. Money market funds across the industry alone have experienced inflows of around US$150bn since the Fed cut rates by 50bps in mid-September to a range of 4.75-5%. It’s another case […]
A falling rate environment
Video transcript In a falling rate interest environment, it’s actually on a flow basis, from an assets under management standpoint, a positive situation in the marketplace for money market funds. Despite what has been thought of from a media perspective as being a wall of cash that will start to exit money market funds in […]
Here we go again
It should be no surprise when the financial markets get ahead of themselves. And we don’t need to be an expert at behavioural economics to know rational investors don’t exist. But that doesn’t make it any less frustrating when traders get over their skis, adding volatility and detracting from liquidity in the market. Just as […]
The Fed’s balancing act
One way US Federal Reserve leaders stay on message is to repeat words. Chair Jerome Powell certainly does, though sometimes the soundbites come back to haunt him – remember “transitory”? In the last few Federal Open Market Committee (FOMC) meetings, he struck a cadence with “confidence”; at 31 July’s post-meeting press conference, it was “balance.” […]
Much to celebrate, much to discuss
If cash is king – and we certainly think so – it held court last month in Pittsburgh. The annual Crane Data Money Fund Symposium took place in the conference centre attached to our global headquarters, and what a court it was. More than 600 portfolio managers, salespeople and clients came to celebrate the industry’s […]
Adapting to a shifting liquidity backdrop
UK inflation fell to 2.3% in April, its lowest level in almost three years and just shy of the Bank of England’s (BoE) target of 2%. The news may have helped spur Prime Minister Rishi Sunak into calling a surprise July election but the higher-than-expected figure – many economists forecast 2.1% – has dampened hopes […]
