A ‘tsunami’ of cash is driving rates ever lower. What will the Fed do?

Usage is soaring to record highs as money market funds and other eligible firms cope with what some analysts are calling a “tsunami” of cash.

BANKS have too much cash on their hands – and they’re running out of places to put it.

Nowhere is this more evident than in the rising popularity of a Federal Reserve programme that lets firms stash their cash overnight with the US central bank in exchange for at best a small return. The payout these days: Zero percent.