- Money market funds have drawn in more than $340bn since the beginning of March.
- Treasury secretary Janet Yellen warned over the “structural vulnerabilities” of the sector.
- Experts have warned that the shift into money market funds also further threatens the stability of the banking sector.
- Much of the cash in money market funds ends up outside of the banking system altogether.
- Usage of the Fed's reverse repo facility has climbed in recent weeks, with daily levels running at about $2.3tn.
Flood of cash into US money market funds could add to banking strains
The flood of cash pouring into US money market funds has the potential to exacerbate strains in the banking system, warns Janet Yellen.