Money Funds Lag Despite U.S. Action.

The article reports on the developments in the money-market funds amid the initiatives of the U.S. government in 2008. The U.S. Federal Reserve has already purchased short-term loans under money funds worth $350 billion. Prime money funds now has $1.56 trillion in assets compared with $2 trillion in September 2008. The interest rate cut of the federal agency also affected money-market returns as it now offers a yield of $1.95 from the previous 5%. Most financial firms are offering fee reductions to attract investor returns.