$6,470,000,000,000 is being put into money market funds as JPMorgan Chase issues a rate cut warning

Investors have now deposited a record $6.47 trillion into money market funds, according to a new report.

In the last week alone, $11 billion flowed into the funds, Bloomberg reports, citing data from the Investment Company Institute.

Investors flocked to money market funds as the Federal Reserve raised interest rates to seek higher returns on their cash.

Now that the Fed has begun cutting interest rates, analysts at JPMorgan Chase warn that the money market mania will come to an end – but not in the short term.

“Typically, money market funds only experience outflows after the Fed has further accelerated the easing cycle and the Treasury curve has normalized and stabilized.”

JPMorgan strategists say it typically takes a few months for money to exit money markets during Fed easing cycles.

This time it could take longer for outflows to occur, they say. The key indicator they track is the yield curve between three-month and two-year Treasury notes, which is still inverted.

Most of the fresh money flowing into the funds last week came from retail investors, driving $8 billion in inflows.

The remaining $3.19 billion came from institutional investors.

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