Jan 09, 2025
Global money market funds draw huge inflows on caution over potential tariffs
Investors piled into global money market funds in the week through Jan. 8, spurred by concerns over potential tariff increases with the upcoming change in the U.S. administration and caution ahead of a critical jobs report that could reshape expectations for Federal Reserve rate cuts. According to LSEG Lipper data, investors channelled $158.73 billion into global money market funds, their second largest weekly net purchase since April 2020. U.S. President-elect Donald Trump, set to take office on January 20, has pledged to impose a 10% tariff on all global imports to the U.S. Additionally, he has threatened to implement a 25% tariff on imports from Canada and Mexico on his first day in office.