U.S. Household Money Market Assets Hit Record $5.11T as Rates Rise Again

Money market fund assets held by U.S. households rose by roughly $63 billion in Q2 2026 to a record $5.11 trillion.
That marks the 17th consecutive quarterly increase.
Over that stretch, household money market assets have grown by about $2.58 trillion, averaging roughly $152 billion of additional assets per quarter.
Household holdings now stand around 89% above the peak reached during the 2020 pandemic.
The trend could receive another boost from higher interest rates.
The Federal Reserve raised rates by 25 basis points to 4.00% on Wednesday, its first hike since July 2023, while markets are pricing additional tightening through mid-2027.
Higher short-term rates increase the yields available on money market funds, making them more attractive relative to idle cash and other low-risk alternatives.
If rates stay elevated, the amount of household capital sitting in risk-free and near-risk-free instruments could continue climbing, creating stronger competition for stocks and other risk assets.