Accoridng to the latest reports, it looks like there’s US Banking crisis triggered $756,000,000,000 flood of capital into cash. Check out the latest reports about this below.
Banking crisis triggers a massive response
According to Bank of America (BofA), money market funds experienced an influx of over $500 billion in capital.
Reuters reports that, as a result of the ongoing banking crisis and the Federal Reserve’s rate hikes, money market funds have received $756 billion in investments this year, according to a recent BofA investor note.
A money market fund is a mutual fund that aims to generate income by investing in short-term debt of high quality, which includes those provided by the US government. This year, the yields of money market funds have surged significantly as a result of the sharp increase in interest rates.
The financial giant reports that money market funds are receiving a significant amount of capital, reaching a level similar to the panic-driven redirection of $917 billion into cash funds during the Covid-19 pandemic three years ago.
According to a recent investor note from BofA, the influx of capital into money market funds is causing a decline in the stock market.
US jobs numbers rise
The price of Bitcoin (BTC) remains stable at around $27,000, while recent data shows that US job numbers have exceeded expectations.
The U.S. Bureau of Labor Statistics (BLS) recently released economic news indicating that payroll employment increased by 339,000 in May, although the unemployment rate also rose by 0.3% to 3.7%.
“Total nonfarm payroll employment increased by 339,000 in May, and the unemployment rate rose by 0.3 percentage point to 3.7 percent, the U.S. Bureau of Labor Statistics reported today.”
The same notes continued and said:
“Job gains occurred in professional and business services, government, health care, construction, transportation and warehousing, and social assistance.”
Make sure to check out the latest reports about this in our previous article.
