(Reuters) - U.S. investors turned to money market funds ahead of the Federal Reserve's policy decision, uncertain about the future path of the central bank's monetary policy amid solid economic data.
Investors placed a net $24.62 billion in U.S. money market funds in the seven days to July 26, their first weekly net purchase since July 5, data from Refinitiv Lipper showed.
The Fed on Wednesday delivered its eleventh rate hike since March 2022, raising its benchmark policy rate by 25 basis points to a 5.25%-5.50% range. The accompanying statement left the door open for another potential increase.
Meanwhile, U.S. equity funds gained a net $2.14 billion in inflows during the week, after recording a weekly outflow of $3.06 billion a week ago.
Investors purchased U.S. large-, mid- and small-cap funds of $2.48 billion, $612 million and $675 million, respectively, while withdrawing about $995 million from multi-cap funds.
By sector, tech funds saw their first weekly outflow in five weeks, amounting to a net $1.96 billion. Meanwhile, metals and mining, and financial sector funds received about $600 million each in inflows.
Investors purchased U.S. bond funds for the fourth successive week, recording $2.56 billion in net buying.
U.S. short/intermediate government and treasury, and short/intermediate investment-grade funds received $2.04 billion and $595 million, respectively. Inflation-protected funds drew $737 million, their first weekly inflow in 15 weeks.