Money-Market Funds: A Safe Haven Amid Economic Uncertainty

Deposit outflows from banks to money-market funds are putting pressure on the Federal Reserve's overnight reverse repurchase facility, which borrows from money funds and other firms in exchange for securities such as Treasurys and then returns the money the next day. The facility offers interest on firms' cash balances, but some analysts say the flows add to bank-system stress. Money-market fund assets are increasing at a record clip, with much of that cash making its way to the Fed's program.