The Impact of the US Debt Ceiling on Financial Markets.

Money market mutual funds have become more attractive due to recent interest rate hikes from the Federal Reserve, but investors worry about increased risk as the debt ceiling debate intensifies. Despite concerns about a possible default, advisors still recommend money market funds for cash, as larger institutions like Vanguard, Fidelity Investments or Charles Schwab have money available to support their money market funds. Money market funds invest in a range of assets with staggered maturities, so they are constantly rolling over securities. Money market fund yields may drop when the Federal Reserve begins cutting interest rates again, but these assets may still be appealing in the meantime.