The “weighted average life” of your fund is only 19 days so a 1/4 of 1% cut in the federal funds rate would indicate a decline in your annualized rate of return from 5.15% to 4.90% in about 19 days. A 3/4 of 1% decline in the federal funds rate by YE 2024 would indicate a decline in the annualized return of your fund to about 4.40% by December 31.How are they connected? To be specific. Fido Premium MM rate is currently 5.15%. Has not gone down in a long time, even as the 10 year rate has dropped significantly. So if the Fed drops rates starting in Sept. what would be the impact on Fido MM rate. How fast would FIDO rate decrease as Fed drops rates? Lets say after the Fed drops rates by .75% by year end, what would your forecast of Fido MM rate by year end.?
Statistics: Posted by dkturner — Wed Aug 21, 2024 6:14 pm — Replies 4 — Views 456