Money market mutual fund assets jumped by $36.1 billion on Tuesday (March 17) to a record high of $8.276 trillion, according to our Money Fund Intelligence Daily. Assets have risen $34.6 billion in the week through Tuesday, and they've increased by $34.6 billion in March month-to-date (through 3/17). MMF assets increased by $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion in August. They rose by $63.7 billion in July, $6.7 billion in June and $100.9 billion in May. But MMFs decreased $24.4 billion in April and increased by $2.8 billion last March. (Note: For those attending our Bond Fund Symposium, which takes place March 19-20, welcome to Boston! Attendees and Crane Data subscribers may access the conference materials via our Bond Fund Symposium 2026 Download Center.
In other news, a release, "Federal Reserve Issues FOMC Statement," tells us, "Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has been little changed in recent months. `Inflation remains somewhat elevated."
It states, "The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The implications of developments in the Middle East for the U.S. economy are uncertain. The Committee is attentive to the risks to both sides of its dual mandate.
The FOMC explains, "In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3‑1/2 to 3‑3/4 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective."
They add, "In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments."
The statement also says, "Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Beth M. Hammack; Philip N. Jefferson; Neel Kashkari; Lorie K. Logan; Anna Paulson; and Christopher J. Waller. Voting against this action was Stephen I. Miran, who preferred to lower the target range for the federal funds rate by 1/4 percentage point at this meeting."
Finally, website ETF Trends writes, "Short-Term Bond ETFs Are Still Fashionable." They comment, "Last year's rate cuts still linger in the minds of advisors and fixed income investors. They may be inclined to focus on intermediate-term and longer-dated bonds and the related ETFs. After all, those assets have higher yields and are often more responsive to changes in interest rates. So if the Fed lower rates this year, there's greater upside potential with longer duration fixed income fare. That doesn't diminish the utility of short-term bond ETFs."
The piece says, "As advisors know, those funds come in three flavors: ultrashort bond, short-term bond, and short-term government bond. Broadly speaking, those are conservative options. Still, investors should still manage expectations when it comes to this corner of the bond market."
They quote Morningstar's Amy Arnott, "Like other bonds, short-term bonds perform best during periods of declining interest rates and low or declining inflation. Because of their limited maturities, though, they don't benefit as much from downward trends in interest rates."
The article adds, "The universe of short-term bond ETFs is densely populated by both active and passive funds, many of which are cost-effective. So investors have plenty of choice and don’t need to worry about onerous fees.... Examples of short-term bond ETFs include the JPMorgan Limited Duration Bond ETF (JPLD) and the Schwab 1-5 Year Corporate Bond ETF (SCHJ)."
