How to maximize your income now that Federal Reserve has cut rates

Now that the Federal Reserve has started cutting rates again, investors may be on the hunt for new sources of income. The central bank lowered the federal funds borrowing rate by 25 basis points — or 0.25 percentage point — on Wednesday. As that rate decreases, yields on short-term assets like money market funds and Treasury bills will follow suit. There is currently a record $7.3 trillion in money market funds, according to the Investment Company Institute . "We are encouraging investors to consider locking in higher yields and to diversify away from excess cash and short-term fixed income positions," Wells Fargo wrote in a note Tuesday, ahead of the rate cuts. Still lower rates coming The Fed telegraphed two more rate cuts this year and one in 2026. UBS anticipates fed funds will end up