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VMFXX Safety in the Trump/Musk era? (midwest.social)

submitted 23 hours ago* (last edited 23 hours ago) by Chastity2323@midwest.social to c/personalfinance@lemmy.ml

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I'm young and a student and I have most of my savings in a VMFXX money market account which I basically use as a low risk place to set and forget my money. Most of this fund is federal cash and securities. I like that it is there when I need it and that it makes more interest than a savings account.

I've been hearing vague things about Elon Musk messing with the treasury since Trump got elected and there is just seems to be a lot more uncertainty in the federal government overall.

The value of the money in this money market account has never dropped before, but is there any risk that the current administration could mess things up enough that my savings could be at risk? If so, is there anywhere else I could leave my money that would be similarly low risk but earn more interest than a savings account with my credit union?

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[–] RagingHungryPanda@lemm.ee 2 points 20 hours ago

This one looks to be based on currently interest rates for short term US Securities, so it follows the rates set by the Fed. If there's a rate change, there's an announcement. This is about the safest thing you can do - it's not like you can have fewer dollars with it.