Money-Fund Rules in Crosshairs Again As Boston Fed Takes Aim
- Pandemic-related money-market turmoil underscored risks
- Prime money funds ‘were the problem,’ Rosengren says
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The drumbeat for change to rules surrounding money-market mutual funds may be growing, with U.S. central bank official Eric Rosengren on Tuesday once again taking aim on the subject.
Money funds “failed again” during the coronavirus-related market upheaval that took place earlier in the year, and there needs to be a focus on reforming the rules that govern them, the Federal Reserve Bank of Boston president said Tuesday. He said it was prime funds -- those which are able to invest in non-government-backed instruments -- “that were the problem” and that the situation surrounding money funds is “quite disturbing.”