How Inflation Is Quietly Eating Your Money Market Fund Returns

Inflation and Your Money with Fexingo: Protecting Purchasing Power and Beating Inflation · Jul 28, 2026 · 5m · transcript

In Episode 141 of Inflation and Your Money with Fexingo, Lucas and Luna dig into the quiet erosion of money market fund returns. With the Fed holding rates at 3.63 percent and breakeven inflation at 2.21 percent, the real yield on cash is barely positive. They walk through how the average money market fund yields around 3.6 percent, why inflation expectations matter more than nominal rates, and the $12 billion that flowed into these funds last month—much of it from investors chasing safety. Plus, they discuss whether brokerage cash sweeps are a worse deal and why Series I bonds might…