Interest rate adjustments will affect the yields of money market funds, and there are policy effects. However, the effects of upward and downward adjustments tend to be the same in the short term, which will increase the yields of money market funds. The short-term impact of downward adjustments is even more obvious.

When interest rates rise, abnormal returns will increase, causing the yields of money market funds to rise; when interest rates fall, abnormal returns will increase significantly, causing the yields of money market funds to rise instead of falling.