Forget chasing stocks — savers are piling into cash. US money-market fund assets hit a record $8.3T as investors abandon hopes for Federal Reserve rate cuts and start bracing for higher rates instead. About $66B flowed into the industry in the week ending May 28, including $41B on Thursday alone as portfolios were repositioned before month-end.

• Money-market funds have pulled in roughly $172B this year, with the average seven-day yield sitting at 3.34% as of May 28.
• Traders now see a ~60% chance of a quarter-point Fed rate hike this year as inflation fears tied to the Iran conflict gain traction.

Follow the yield: Deutsche Bank strategist Steven Zeng says the shift from rate cuts to potential hikes is making short-term debt more attractive, with “much of that repricing” already reflected in Treasury bill yields. With Wall Street pros, corporate treasurers, and everyday savers all chasing those higher yields, the next question is whether higher-for-longer rates keep swelling the cash pile — or eventually send investors back into stocks and other risk assets.