If any businesses have begun shifting cash from banks to money market funds now that unlimited insurance for demand deposits is gone, they’ve done so modestly so far.
Institutional holdings of money funds that invest in government bonds jumped 7%, or $49 billion, from late November to early January. Over roughly the same time, however, balances in transaction accounts also increased by about 5%, or $68 billion. (The following graphic shows data on nationwide cash aggregates, assets in different types of money funds and cash allocations at households and businesses in separate tabs. Interactive controls are described in the captions. Text continues below.)