Uncertainty abounds, driven in part by the unfolding of the Trump administration’s aggressive tariff plans. The dynamic situation has rattled the stock market and degraded consumer sentiment. The situation has put a premium on the relative stability of the money markets, leading to record inflows into liquidity vehicles. However, we don’t think the lion’s share of this growth is due to a flight from volatility, but the continuing slow march of money from people fed up with the low interest rates found in other cash products. Liquidity products, such as the MMDT Pools, offer yields based on market rates, seeking to match or exceed the benchmark rate set by the Federal Reserve. The good news is the Fed has not cut its federal funds target range since December on concerns about sticky inflation and—yes—the uncertainty. That has helped the yield of the MMDT Pools to stay at attractive levels. And as the central bank recently forecast that it would likely not restart its easing cycle until the second half of the year, this scenario is likely to continue in the near future. In addition to seeking attractive returns, the MMDT Pools provides the benefits of diversification, active portfolio management by investment professionals and a competitive fee structure. We think this positions them well to address the public sector’s liquidity and income needs, no matter the rate environment. Please contact your MMDT representative with any questions. As of April 7, 2025

Current Cash Pool 7-day net yield

Your Representatives

Federated Hermes Participant Services Wayne.Perry@FederatedHermes.com 1-888-965-MMDT (6638) Wayne is responsible for managing the MMDT Participant Services team from the High Street office.

Wayne Perry

Federated Hermes Associate Sales Representative Caroline.Kafafian@FederatedHermes.com 724-809-1250 Caroline is responsible for relationship management with MMDT participants.

Caroline Kafafian, CIMA

For more information on how you can seek to take advantage of a rising-rate environment and invest in the MMDT Cash Portfolio, call 617-335-0770.

Federated Hermes Senior Vice President Senior Sales Representative Brian.Willer@FederatedHermes.com 617-335-0770 Brian is responsible for relationship management with MMDT participants.

Brian R. Willer, CIMA

Sitting pretty

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MMDT is the state sponsored investment pool offered by the Commonwealth of Massachusetts to its public entities

,CFA

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Mortgage-backed Securities

Deborah Cunnigham, CFA December 2, 2024

Money market assets have reached a new mark.

Record high

ARTICLE

Deborah Cunningham, CFA March 31, 2025

Total US money fund assets push past $7 trillion.

The new Magnificent Seven

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