"Maximizing Cash: Investment Strategies for Waiting on Fed Rate Cuts"

Investors with $6.5 trillion in cash are closely watching inflation data and piling more cash into money-market funds after the Federal Reserve pushed back on expectations for interest-rate cuts. Fed Chairman Jerome Powell's cautious stance on rate cuts has led to a surge in cash parked in money-market funds, with investors seeking higher yields. While the bond market is reacting to Powell's comments, U.S. stocks have been on a record-setting spree. Some experts caution against staying in cash for too long, advocating for a traditional 60:40 allocation to stocks and bonds to offset potential equity turmoil.