Global Money Market Funds Swell to $46B Amid Geopolitical Tensions
Global money market funds saw an influx of $46.1 billion in net inflows during the week ended September 2, the largest single-week haul since August 5.
This massive flow into cash was driven by three converging forces: a military confrontation in the Strait of Hormuz, a hawkish tone from Federal Reserve Chair Kevin Warsh, and uncertainty surrounding the jobs report.
The standoff in the Strait of Hormuz has been ongoing since early 2026, with Brent crude prices surging to around $97.62 per barrel during the reference week, sparking concerns about energy-driven inflation.
Warsh's keynote address at the Kansas City Fed's annual Jackson Hole symposium reinforced the possibility of a rate hike, citing the need for underlying inflation to reach the Fed's objective 'clearly and at sufficient speed.'