Currently, a record $8.44 trillion is parked in money market funds, yielding approximately 3.5%, which is exactly on par with the current annual inflation rate (headline CPI) of about 3.5%, resulting in zero real purchasing power gain. Investors opt for money market funds due to their simplicity, liquidity, and perceived safety, even though the Federal Reserve's fed funds rate upper bound has been at 3.75% since December 11, 2025, the real return from money market funds, adjusted for inflation, is close to zero.